You are provided with the following information on Sparkle Ltd:

• There are 60 million ordinary shares.

• The shares will pay a dividend of 80 cents at the end of the year. The dividend is

  expected to grow at 2% p.a. indefinitely.

• Sparkles beta is 1.2, the risk-free rate is 4%

• The return on the market is 12%

• Sparkle has 1.5 million bonds with a return of 2% above the risk-free rate. The

  bonds are currently trading at $85.

• The company tax rate is 30%.

a. Calculate Sparkle Ltds WACC. Show all your workings.