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Could you assist with the answers for 1.1 and 1.2 Question 1 (20) The following information was extracted from the most recent statement of financial

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Could you assist with the answers for 1.1 and 1.2

Question 1 (20) The following information was extracted from the most recent statement of financial position of Swift Logistics Ltd: R'000 Ordinary shares issued 8 000 Retained income 1 000 Irredeemable 12% preference shares 800 Long-term loans 3 200 13 000 Additional information: The company has 1 500 000 ordinary shares in issue. The current declared dividend is R3.50. According to the latest annual report the company expects dividends to grow by 4% per annum. Shareholders require a return of 22%. The preference shares are non-convertible and similar preference shares are currently trading at 10% The long-term loan matures 5 years from today and carries an interest rate of 12.86%. The current long-term loan rate for a similar loan is 17.15%. The tax rate is 30% Required: Show all calculations and formulas and round off all final calculations to the nearest rand. 1.1. Calculate the current market value of the company. 1.2. Calculate the current weighted average cost of capital (WACC) of the company based on the market value weights. (14) (6)

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