QUESTION ONE Sasol is a major South Africa energy and chemicals group. It mines coal and produces liquid fuels and chemical products. The group also produces gas and oil. Sasol is the largest producer of synthetic fuels in the world with sales of over R181 billion. In the 2013 integrated report, Sasol indicated that its weighted average cost of capital (WACC) is 12.95% in South Africa, 8% - 11.2% in Europe and 8% in the USA. Sasol's share price appreciated strongly in 2013 and early 2014 before falling significantly at the end of 2014 due to the collapse in oil prices. Sasol reported that the volatility of financial markets, the lack of liquidity and the increase in the cost of debt affected the company's cost of capital. (a) Why should the weighted average cost of capital (WACC) be used to evaluate Sasol's performance