Calculate the Weighted average cost of capital where:

The tax rate is 28% and payable in the year profits are made;

The company is financed by 75% equity and 25% debt, with market values of R75m and R25m

respectively.

The company has an equity beta of 1,2.

The rate on Treasury bills is 5% and considered to have no risk.

The market risk premium is 7,5%.

The companys after-tax cost of

debt is 6%;