The Chief Executive Officer of Strata Ltd informed you that at the next board meeting she wants to discuss the company$$s current weighted average cost of capital $($WACC$)$ and requested that you calculate it in preparation for this discussion. Strata$$s current capital structure is as follows:

Source of capital

Rand

Ordinary shares issued

$6000000$

Retained earnings

$1000000$

Preference shares

$2500000$

Long$-$term loans

$1800000$

$11300000$

Additional information:

$$ The company has issued $2000000$ ordinary shares.

$$ The company$$s shares currently trade at R$22\mathrm{.}70$ per share.

$$ The company has declared a dividend of R$3\mathrm{.}00$ per share and expects that future dividends will grow at $6\%$ per annum for the foreseeable future.

$$ The preference shares are currently trading at $13\%.$

$$ The company must repay the long$-$term loan at the end of eight $(8)$ years and the interest. The current interest rate for similar long$-$term loans is $16\mathrm{.}6\%.$

$$ The tax rate is $28\%.$

Required:

Note:

$$ Show all formulas.

$$ Round off all final answers to the nearest whole number.

$$ Marks are awarded for all calculations.

Use the information provided to calculate the company$$s current weighted average cost of capital $($WACC$).$