Question 4 (6 marks) The following information is taken from the Statement of Income and Balance Sheet for Great Vision Ltd for the year ended 31 December 2018. Selected financial data as at 31" December 2018: $ SHAREHOLDERS FUNDS Ordinary shares Issue price $1.00 each, fully paid 1,000,000 9% Preference shares Issue price $10.00 each, fully paid 600,000 Retained Profit 202,000 LIABILITIES 8% Debentures, $100 par value 1,000,000 Bank Overdraft 800,000 Accounts payable 100,000 Additional information The nominal rate of interest on the bank overdraft is 10%. Interest is calculated monthly. The debentures are currently selling at $96.50. They mature in seven years. The preference shares are currently selling at $9.50 each. The ordinary shares are selling at $2.40 each with a dividend growth rate of 6%. Recently paid dividend was $0.18 per share. The company income tax rate is 28%. Calculate the weighted average cost of capital to 2 decimal places. Could Great Vision Ltd use its WACC to evaluate all proposed investments? Why