What is the weighted average cost of capital 550 debentures


Question - What is the weighted average cost of capital:

total debt $1135000

total equity $1305000

share price $1.55

1,150,000 ordinary shares issued at $1

retained earnings $155000

dividend was $0.05 per share.

Dividends are expected to grow by 7% per year

550 debentures were issued with face value of $1000 trading at par value of 8.5%

mortgage loan $220000 at variable rate of 8.9%

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