Major plc has 20 million £0.50 ordinary shares and irredeemable loan capital with a nominal value of £40 million in issue. The ordinary shares have a current market value of £2.40 per share and the loan capital is quoted at £80 per £100 nominal value. The cost of ordinary shares is estimated at 11 per cent and the cost of loan capital is calculated to be 8 per cent.

The rate of Corporation Tax is 25 per cent. What is the weighted average cost of capital for the company?