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Information concerning the capital structure of Praxit Finance Company is as follows: - The current risk-free rate is 7,25%, while the current market portfolio return

image text in transcribedimage text in transcribed Information concerning the capital structure of Praxit Finance Company is as follows: - The current risk-free rate is 7,25%, while the current market portfolio return is 12,2%. The company's beta is 1 . - The preference share capital was issued at R5 per share. An annual 10% dividend is paid at the end of each year. The shares are currently trading at R5,50 per share. - Debentures due in 7 years with a before tax cost of 10% - The company tax rate is 28%. REQUIRED: Calculate the cost of: 1.1 Ordinary shares 1.2 Preference shares (3) 1.3 Debt 1.4 Using the table below and the given market values of every form of capital, calculate the weighted average cost of capital (WACC) using your answers from above. \begin{tabular}{|l|l|l|l|l|} \hline Capital source & Market Value & Weighting & Cost & Weighted Cost \\ \hline Ordinary Shares & & & & \\ \hline Preference Shares & & & & \\ \hline Debt & & & & \\ \hline Total & & & & \\ \hline \end{tabular}

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