Pollock has in issue 1 million ordinary shares, par value 25p and £100 000 of 10 per cent irredeemable debentures. The current ex-dividend market price of the ordinary shares is 49p per share and the current ex-interest market price of the debentures is

£72 per £100 par. The company has just paid a dividend of 9p per share and dividends are expected to continue at this level indefinitely. If the company pays corporation tax at a rate of 30 per cent, what is its weighted average cost of capital?