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calculate wacc? Recently, you have been appointed as the financial manager of Winter Blues Ltd. The company is investigating building a new shoe manufacturing plant

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calculate wacc?
Recently, you have been appointed as the financial manager of Winter Blues Ltd. The company is investigating building a new shoe manufacturing plant in Kariega (former Uitenhage). The company estimates that this project will cost R4.5 million. Consider the following current market data on Winter Blues' securities: Debt: 18 560, 15% coupon bonds, 12 years to maturity, selling at a premium of R1 250. The bonds have a R1 000 par value each and make semi-annual payments. Preference shares: 23 200 preference shares in issue selling for R125 per share. The fixed preference dividend per share is R13. Ordinary shares: 398 750 shares in issue, selling for R80 per share; the share's beta coefficient (B) is 1.3. Market-related data: 12% average return on the market; 5% risk free rate. Winter Blues' tax rate is 28%

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