Tools Window Help R$ 93% 0 Tue 16 05 Q 12.pdf (page 3 of 8) Q Search 5. The directors of Zeus ple are considering opening a new manufacturing facility. The finance director has provided the following information: Initial capital investment: 2,500,000 Dividends for the last 5 years have been: 2013 10.0 2014 10.8 2015 11.4 2016 13.2 2017 13.7 Year Net dividend per share (pence) The following is an extract from the statement of financial position of Zeus plc for the year ended 31" December, 2017 1 Creditors due in more than 1 year 8% debenture Long-term loan (variable rate) Capital and reserves 2,000,000 shares of 25 pence each 700,000 800,000 500,000 The authorized share capital is 4 million shares, and the current market price per share at 31 December, 2017 is 136 pence ex-dividend. The current market price of debentures is 60(ex-interest) and interest is payable each year on 31" December MacBook DO 80 13 888 F F + % A # $ 4 0 9 3 5 7 6 I 0 Y C T Est View Go Tools Window Help B%93%) Tue 16 05 Q 12.pdf page 3 of 3) Q Search per Share (pence) The following is an extract from the statement of financial position of Zeus ple for the year ended 31" December, 2017 Creditors due in more than 1 year 8% debenture 700,000 Long-term loan (variable rate) 800,000 Capital and reserves 500,000 2,000,000 shares of 25 pence each The authorized share capital is 4 million shares, and the current market price per share at 31" December, 2017 is 136 pence ex-dividend. The current market price of debentures is 60(ex-interest) and interest is payable cach year on 31 December The interest rate on the long-term loan is 1% above the London Interbank Offer Rate (LIBOR), which at present stands at 16% The debentures are irredeemable. Ignore taxation Required: Calculate the WACC for Zeus at 31 December, 2017 28 13: 25 8 11 TS :8 % $ 4 ) 2 + & 7 3 5 6 00 9 0 dele W E R Y U I 0 IT C