12. The following is the capital structure of X Ltd as on 31 December 2013.

Equity capital (paid up) Reserves and surplus 10% Preference shares 15% Term loans Total million) 563.50 485.66 84.18 377.71 1,511.05 The share of the company is currently selling for *36. The expected dividend next year is *3.60 per share anticipated to be growing at 8 per cent indefinitely. The redeemable preference shares were issued on 1 January 2007 with twelve-year maturity period. A similar issue today will be at 93. The market price of 10% preference share is 81.81. The company had raised the term loan from a financial institution in 2009. A similar loan will cost 10% today.

Assume an average tax rate of 35 per cent. Calculate the weights average cost of capital for the company using book-value weights. 13. The following capital structure is extracted from Delta Ltd's balance sheet as on 31 March 2013: ('000) Equity (25 par) 66,412 Reserves 65,258 Preference (100 par) 3,000 Debentures 30,000 Long-term loans 5,360 170,030 The earnings per share of the company over the period 2004-2013 are: Year Year ' 2004 2.24 2009 4.40 2005 3.00 2010 5.15 2006 4.21 2011 5.05 2007 3.96 2012 6.00 2008 4.80 2013 6.80 The equity share of the company is selling for *50 and preference for 77.50. The preference dividend rate and interest rate on debenture respectively are 10 per cent and 13 per cent. The long-term loans are raised at an interest rate of 14 per cent from the financial institution. The equity dividend is 24 per share. Calculate the weighted average cost of capital for Delta Ltd, making me necessary assumptions.