P limited provided the following information
Contributed Capital $
100,000 ordinary shares 100,000
50,000 (14% preference shares 50,000
NON-Current Liabilities
16% Debentures (face value$100) 60,000
18%Mortgage 42,400
Market Prices are given as fallows:
Ordinaryshares $1.50
Preferenceshares $1.12
Debentures $86.00
This business is planning to pay an ordinary dividend at the endof the year of 18 cents, which is expected to grow at 5% per annum.The company rate of tax is 30%. Calculate the weighted cost of capital (WACC) (Show all working)