Ziggy Ltd has 1 000 000 shares in issue and is currently paying a dividend of R2 per share with a growth of 5%. The shareholders require a rate of return of 24%. The preference shares have no conversion rights and carry a dividend pay-out ratio of 15%. Similar preference shares are currently trading at 12%. The long-term loan matures in 10 years and carries an interest rate of 16%. Current long-term interest rates for a similar loan are 18,34%. Bank overdraft rate is 20% and the tax rate is 40%. Ordinary issued shares R 5000 000 Non-distribuable reserves R 600 000 Retained income R 400 000 Irredeemable preference shares R2 000 000 Long-term loans R1 000 000 Bank overdraft R 300 000 Deferred taxation R 600 000

Required: 3.1 Calculate the WACC at market value.