WACC,B Limited has 7 million ordinary shares of R1 each in issue, one million 6% preference shares of a par value of R2 each, 100 000 9% semi-annual bonds with a par value of R1000 each. The shares currently sell for R35 per share and have a beta of 1.0. The preference shares are currently selling for R60 per share and the bonds have 15 years to maturity and currently sell for 89 per cent of par. The market risk premium is 8%, T-bills are yielding 7% and the company?s tax rate is 34%,REQUIRED:,(iii),What is the firm?s capital structure in market value terms?,(7),(iv),What is the firm?s WACC?,(8)
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