Question 8 The board of directors of a manufacturing company in South Africa decided to expand its business operations. Additional capital is to be raised for this purpose. The following information was supplied to the financial manager to assist with the financing decision: A few years ago, the company issued 200,000 ordinary shares at R4 per share. The current price for one share is R6. The last dividend paid was 200c. The next expected dividend will be 250c. The company also issued 100,000 10% preference shares at R2 per share. The current price for one share is R2.50. A R500,000 15% loan was taken out five years ago. The current outstanding balance is R300,000. The company has a tax rate of 35%. Required Calculate the weighted average cost of capital by using book value weights. (Note: Round off to three decimals.) (20 Marks)