QUESTION FOUR (25 Marks) Pretoria Traders uses a combination of shares and debt in their capital structure. The details are given below: There are 5 million R4 ordinary shares in issue and the current market price is R5.80 per share. The latest dividend paid was 70 cents and a 9% average growth for the past six years was maintained. The company has 3500000R5,8% preference shares with a market price of R4.80 per share. Pretoria Traders has a public traded debt with a face value of R13 million. The coupon rate of the debenture is 7% and the current yield to maturity of 16%. The debenture has 8 years to maturity. They also have a bank overdraft of R8million due in 3 years' time and interest is charged at 15% per annum