QUESTION FOUR [20] ZeebeeDee Ltd has the following capital structure: Equity 2 000 000 R2 ordinary shares, market price R2,50 Preference 1 000 000 12% R1 preference shares, market price R1, 50 Reserves R1 500 000 Bank loan R500 000 15% bank loan Debentures R1750. 000.16% debentures, market price R 150 (issued at R100). The current and expected future rate of ordinary share dividend is 20% with no growth. Tax rate is 30% Required: 4.1. Calculate the weighted average cost of capital using the Dividend Growth Model. (15) If the entity requires a further R500 000 identify and explain which option they will use to finance this amount