Prince Publications Ltd (PPL) wishes to estimate its weighted average cost of capital. It has two sources of capital: ordinary shares and 5-year bonds. Currently, the market value of the shares is $18.45 per share and the market value of the bonds is $115.080 per $100 par value. The shares have recently paid an annual dividend of $2.52 per share and the bonds have recently paid an annual coupon interest of $12.80 per $100 par value. The face value of the bonds on issue is $115 million. There are 13,500,000 ordinary shares on issue. The expected growth rate of dividends per share is 2.3% p.a.. Ignore taxes. PPL’s weighted average cost of capital is closest to: a) 13.52% p.a. b) 13.73% p.a. c) 13.95% p.a. d) 15.07% p.a.