kindly assist with 6.2

0.1.2. Business risk 6.1.3. Financial risk Simon Dube, the financial manager of Speedway Distributors (Pty) Ltd, has to make a recommendation to the executive management committee of the company about the viability of a new proposed project. Simon has calculated that the return on the proposed project is 15.50%. He needs to calculate the weighted average cost of capital in order to decide whether the project is viable or not and has the following information available to do so: Source Cost Book value 1 500 000 8.00% Long-term debt Preference shares Ordinary shares 800 000 9.50% 11.00% 0,31 0.17 0,52 2 500 000 4 Sou ou Required: Use the costs of capital available to Simon to calculate the weighted average cost of capital (WACC) for the proposed project. (13) Show all your calculations and round off your answers to two decimals. TOTAL: 150 Page 10 of Assignment SBS 0.1.2. Business risk 6.1.3. Financial risk Simon Dube, the financial manager of Speedway Distributors (Pty) Ltd, has to make a recommendation to the executive management committee of the company about the viability of a new proposed project. Simon has calculated that the return on the proposed project is 15.50%. He needs to calculate the weighted average cost of capital in order to decide whether the project is viable or not and has the following information available to do so: Source Cost Book value 1 500 000 8.00% Long-term debt Preference shares Ordinary shares 800 000 9.50% 11.00% 0,31 0.17 0,52 2 500 000 4 Sou ou Required: Use the costs of capital available to Simon to calculate the weighted average cost of capital (WACC) for the proposed project. (13) Show all your calculations and round off your answers to two decimals. TOTAL: 150 Page 10 of Assignment SBS