• Assuming the average industry standard WACC is around 6.256%. Comment on PTGC Ltd in relations to attracting new investors and lenders. What recommendation would you give to PTGC Ltd to improve their WACC so it may align with the sector average rate?

PTGC Ltd. Balance Sheet as at 30 June, 202x
Current Assets	$ '000	$ '000
Cash	50
Accounts Receivable	80
Inventory	120	250
Non-Current Assets
Plant and equipment	950
Land and Building	1100
Goodwill	140	2190
Total Assets		2440
Current Liabilities
Accounts Payable	280
Provn for Long Service Leave	85	365
Non-Current Liabilities
Debentures	550
Mortgage loan	220	770
Total Liabilities		1135
Net Assets		$1305
Equity
Share Capital:
1,150,000 ordinary shares issued at $1.00		1150
Retained earnings		155
Total Equity		$1305

Additional information:

• Current share price is $1.55
• Most recent dividend was $0.05 per share. Dividends are expected to grow by 7% per year.
• 550 Debentures were issued with a face value of $1,000 trading at par value of 8.5%
• The mortgage loan is currently at a variable rate of 8.9%.

2. Calculate the WACC of PTGC using the above information. Assume a company tax rate of 30%. Note: All calculations should be made to at least three decimal places in parts of this task.
4.