Use the following information

to answer question 31 to 33.

An analyst covering

Limpopo Ltd has compiled the following data (in hundreds of millions of

rands) for the financial year ended 31 December 2024, in preparing for further

analysis. This analysis will be included in a report she has been asked to

produce. Limpopo Ltd is financed through a combination of preference

shares, bonds, and equity.

Preference

share dividends                                                      R50

Net income

available to common shareholders                      R320

Increase in

investment in working capital                                R60

Increase in

investment in fixed capital                                     R120

Net borrowing                                                                          R90

Income

resulting from reversal of restructuring charges         R25

Depreciation                                                                             R140

Interest

expense                                                                       R100

Tax rate                                                                                     30%

Long-term growth rate of FCFF                                               3%

Long-term growth rate of FCFE                                               4%

Calculate the weighted average cost of capital (WACC) of Limpopo Ltd.