Fastrack Ltd. is a transportation company wanting to know if they should proceed with a particular investment. They have extracted some information from their balance sheet and also provided some other relevant data. The figures reflect their target capital structure. The tax rate is 30%. Calculate the WACC given the following information. Corporate bonds of $2m (face value $100 each and 9% pa coupon, paid annually, issued 6 years ago and maturing in 4 years). Yield to maturity is 7% pa. Perpetual preference shares of $1m (dividend rate of 12% pa of $5 face value, paid annually in arrears). The preference shares are currently trading at $5.70 each. . Ordinary shares of $2m (issue price $2 each ordinary share). Next year's dividend is expected to be $0.50. The current price implicitly implies a dividend growth rate of 6% pa indefinitely. The current return on the market is 15% and the market risk premium is 6%. Fastrack's beta is 1.2