Question 6 (9 Marks) The balance sheet and other information for Company Z are shown as follows BALANCE SHEET OF Company Z (Smillion) Current Assets Net Fixed Assets Investments 10 25 15 Current Liabilities Long-term Debt Deferred Taxes Shareholders' Equity Total 10 30 Total 50 50 30% Corporate Tax Rate Number of ordinary shares on issue Last annual dividend paid Dividend growth rate: Equity Beta Expected market return: Risk-free rate: 10 million S0.30 per share 4% 12% 7% Company Z's long-term debt consists of 14% bonds issued with a face value of $10 million, paying semi-annual coupons. These bonds have exactly 5 years to maturity with 10 coupons to be paid. The market yield on the bonds is quoted at 12% p.a. Its equity consists entirely of ordinary shares. Required a) What is the WACC of Company Z? (6 marks)