An extract from Pre-Chem Ltd's latest statement of financial position is provided below: Additional information: - The ordinary share capital was issued ten years ago at a par value of R1.20 per share. The current share price is R11.35. - Over the past five years, the stock exchange has recorded an average return of 13.5% per annum. Pre-Chem Ltd's share price increased at a rate of 18.75% over the same period. - The return on government bonds is 7.6%. The current premium that investors require when investing in equities is 5.5%. - The redeemable preference share capital consists of 500.000 shares issued at R0.50 each. They are redeemable in full at par value in three years' time. An annual 6% dividend will be paid at the end of each of the three years. They are currently trading at R0.46 per share. - Pre-Chem Ltd's bonds have ten years left to maturity, a coupon rate of 12% per annum, a par value of R1000 and are trading at 103% of par value. - The corporate tax rate is 28%. Required: Calculate Pre-Chem Ltd's weighted average cost of capital (WACC). (20)