Question 4 (12 marks) The Chief Executive Officer of Strata Ltd informed you that at the next board meeting she wants to discuss the company's current weighted average cost of capital (WACC) and requested that you calculate it in preparation for this discussion. Strata's current capital structure is as follows: Source of capital Ordinary shares issued Retained earnings Preference shares Long-term loans Rand 6 000 000 1 000 000 2 500 000 1 800 000 11 300 000 Additional information: 0 The company has issued 2 000 000 ordinary shares. 0 The company's shares currently trade at R22.70 per share. The company has declared a dividend of R3.00 per share and expects that fut dividends will grow at 6% per annum for the foreseeable future. The preference shares are currently trading at 13%. The company must repay the long-term loan at the end of eight (8) years and interest. The current interest rate for similar long-term loans is 16.6%. The tax rate is 28%. Required: Note: Show all formulas. Round off all final answers to the nearest whole number. 0 Marks are awarded for all calculations. Use the information provided to calculate the company's current weighted avera of capital (WACC).