The following information is available regarding Dube Tools, a manufacturer of lathe tools: The company is 20%-equity financed and has 10 000 outstanding ordinary shares, each valued at the market price of R25. The company pays 60% of its earnings as dividends and pays 28% company tax. The expected sales are R530 000, fixed costs are estimated at R250 000 and variable costs are estimated at 30% of sales. The cost of acquiring new debt from the bank is 10%. The company has an alternative of introducing 30% debt in its capital structure while keeping the cost of each financing source together with its market value the same. REQUIRED Considering the role of shareholders wealth maximisation of a financial manager, which capital structure would you advise Dube Tools to choose? Support your recommendation by means of relevant calculations.