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REQUIRED Use the information given below to calculate the following: 4.1.1 Economic Order Quantity (expressed to the next whole number) (4 marks) 4.1.2 Re-order point.

REQUIRED Use the information given below to calculate the following: 4.1.1 Economic Order Quantity (expressed to the next whole number) (4 marks) 4.1.2 Re-order point. (3 marks) INFORMATION The monthly sales of a product sold by Afcon Limited is 120 000 units. The purchase price is R12.50 per unit. The carrying cost of inventory amounts to 10% of the purchase price. The ordering cost is R9 per order. It takes the suppliers 12 days to execute an order. Assume that the business operates for 360 days in a year. 4.2 REQUIRED Use the information provided below to calculate the following: 4.2.1 The cost (as a percentage expressed to two decimal places) of ordinary share financing, preference share financing and the loan. (9 marks) 4.2.2 The weighted average cost of capital (expressed to two decimal places). (4 marks) INFORMATION Manco Limited intends investing in a project and is considering using the following three sources of finance: Ordinary shares The market price of an ordinary share of Manco Limited is R100 and the total ordinary share capital is R1 000 000. The shares were initially sold for R80 each. The expected dividend per share at the end of year 1 is R15. The expected growth rate in dividends is 10%. The dividend growth model is used to estimate the cost of the ordinary shares. Preference shares Manco Limited intends issuing 4 000 15% preference shares at R105 per share. The cost of issuing the shares is estimated at R5 each. Long-term loan Manco Limited intends obtaining a long-term loan. The loan of R580 000 is expected

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