QUESTION FOUR [25 MARKS] GMB Ltd is a JSE listed mining company which is currently reviewing its existing and potential investment opportunities, due to the recent global decline in demand for resources. One of the key things that the key stakeholders of the company have requested is that the company's cost of capital to be communicated. Extracts from the statement of financial position of GMB as at 30 April 2022: R'000 Ordinary shares (nominal value 500 cents) Retained earnings 4% Preference shares (nominal value R10) 7% Debentures redeemable after six years Long-term bank loan 40 000 180 000 30 000 30 000 10 000 290 000 Additional information: Recent information obtained from the JSE showed that the ordinary shares are currently trading for R47 and that a dividend of 363 cents per share was paid a few days ago Further information reveals the following history of the company's dividend policy: Year 2018 2019 2020 2021 Dividend per share (cents) 309 322 336 350 The preference shares are irredeemable and have a market value of 400 cents per share. The 7% bonds are redeemable at a 5% premium to their nominal value of R1 000 per bond. The debentures are currently trading at R1 045 each. The bank loan has a variable interest rate that has averaged 4% per year in recent years. REQUIRED Using market values, compute the weighted average cost of capital of GMB Ltd. Show all [24] calculations. [1] Communication : Layout and logic