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The following question has given me some challenges and need your help please. QUESTION 4 Read the case study below and answer the questions based
The following question has given me some challenges and need your help please.
QUESTION 4 Read the case study below and answer the questions based on the case study. Gymogae (Pty) Limited (Gymogae) is a mum-national conglomerate Gymagoe is m the process of calculating them WA CC rate for the 2020 financJa/ year and has complied the following information: Ordinary Shares Owidend declared for 2020 R250 ooa The dividend yield of Gymogae is estimated to be There are foo 000 ordinary shares in issue. Preference Shares These are f 0% preference shares convertible into ordinary shares in 2022 The offer for conversion is one ordinary share for every four preference shares held. It is estimated that these preference shares have a market rate of The book value of the preference shares is R4mil/ion and the price per preference share RS Debentures These debentures are non-conve,'tjb/e and non-redeemable_ The debentures current yield to matunty is 20% The market value of the debentures is Rf 4mil/ion_ Additional Information: Extract from the statement of comprehensive income: 2019 650 ooo 2018 601 800 Profit after tax The tax rate is Calculate the Weighted Average Cost of Capital (WACC) of Gymogae Ltd. 2017 557 200 (25)
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