Kaydon plc (Kaydon) is a large manufacturing company which is listed on a major stock exchange. It is financed by ordinary share capital and redeemable debentures. It has 50 million ordinary shares in issue which are trading at 4.15. The debentures have a nominal value of 100 each and 120 million in total. They will be redeemed at par in six years' time. The debentures are currently trading at 92.00 per 100 nominal and have a coupon rate of 5%. Ordinary shareholders receive dividends each year and the annual dividend growth rate is 5% per annum. A dividend has just been paid of 46.00 pence per share. Kaydon pays corporation tax on its taxable profits at an average rate of 20% and you should assume this will continue for the foreseeable future. Required: Calculate the weighted average cost of capital (WACC) for Kaydon. Conclude your answer with an explanation of the WACC and what it would be used for. (12 marks)