10 WACC. Carolynco Textile Systems has recently issued £20 million of 20-year bonds at £100 par value which are currently trading at £96 with a current yield of 14.67 per cent. The company currently has 4.5 million shares in issue, no new issues have been made and the current market price is quoted at £6.30. The cost of equity has been calculated at 15.5 per cent and corporation tax is 30 per cent.

Determine the current weighted average cost of capital (WACC) for the company.