QUESTION 7 AFMCG company finances its operations with 40 percent debt and 60 percent equity. its net income is R16 million and it has a dividend pay-out ratio of 25%. Its capital budget is R15 million in this current financial year. The annual yield on the company's debt is 10% and the company's tax rate is 30%. The company's common stock trades at R55 per share, and its current dividend of R5 per share is expected to grow at a constant rate of 10% a year. The flotation cost of external equity, if it is issued, is 5% of the Rand amount issued. What is the company's WACc