● Indrani Ltd. has the following Capital Structure:

`(in Lakhs)

Equity Share Capital (10 lakhs shares) 100 12% Preference Share Capital (10,000 shares) 10 Retained Earnings 120 14% Debentures (70,000 Debentures) 70 14 % Term Loan 100 400 The Market Price per Equity Share is `25. The next expected dividend per share is `2 and is expected to grow at 8%. The preference shares are redeemable after 7 years at par and are currently quoted at `75 per share. Debentures are redeemable after 6 years at par and their current market quotation is `90 per debenture. The tax rate applicable to the firm is 50%.
You are required to compute of Weighted Average Cost of Capital of the Company using

(a) Book value and

(b) Market value as weights