Tackle Bob is a growing manufacturer of fishing equipment and accessories whose share is actively traded on the over-the-counter market. During 2019, the Cape Town-based company experienced sharp increases in both sales and earnings. Because of this recent growth, Sophia Havenga, the company's financial manager, wants to make sure that available funds are being used to their fullest. Management policy is to maintain the current capital structure proportions of 30\% long-term-debt, 10% preference share and 60% ordinary share equity for at least the next three years. The firm is in the 28% tax bracket. Tackle Bob's division and product managers have presented several competing investment opportunities to Havenga. However, because funds are limited, choices of which projects to accept must be made. The investment opportunities schedule is shown below: Investment opportunity IRR Initial investment To estimate the company's weighted average cost of capital, Havenga contacted a leading investment banking firm, which provided the financing cost data shown in the following table: Financial cost data Long-term debt: The company can raise R450 000 of additional debt by selling 15year, R1 000-par-value, 9% coupon interest rate bonds that pay annual interest. It expects to net R960 per bond after flotation costs. Any debt in excess of R450 000 will have a before-tax cost of 13% Preference shares: Preferences shares, regardless of the amount sold, can be issued with a R70 nominal value and a 14\% annual dividend rate and will net R65 per share after flotation costs. Ordinary share equity: The firm expects dividends and earnings per share to be R0.96 and R3.20, respectively, in 2010 and to continue to grow at a constant rate of 11% per year. The firm's share currently sells for R12 per share. Tackle Bob expects to have R1 500000 of retained earnings available in the coming year. Once the retained earnings have been exhausted, the firm can raise additional funds by selling new ordinary shares, netting R9 per share after underpricing and flotation costs. To do: 8.1 Calculate the after-tax cost of long-term debt below R450 000 using your financial calculator. 8.2 Calculate the after-tax cost of long-term debt above R450 000. 8.3 Calculate the cost of preference shares. 8.4 Calculate the cost of ordinary share equity below R1 500000. 8.5 Calculate the cost of ordinary share equity greater than R1 500000. 8.6 Find the breakpoints associated with each source of capital. 8.7 Calculate the weighted average cost of capital associated with total new financing below and above the break point w/hat is the woinhted marginal cost of