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Consider the following information for Intertec Co: Common share capital: R250 000 5% preference shares: R150 000 Long term debt/loan: R100 000 The cost of

Consider the following information for Intertec Co:

Common share capital: R250 000

5% preference shares: R150 000

Long term debt/loan: R100 000

The cost of equity is 5%, while the company pays 15% on the bank loan. It pays 25% income tax.

Calculate the weighted average cost of capital (WACC).

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