1. (Calculating the weighted average cost of capital) Brian Logistics Ltd. has a targeted capital structure of 40 percent debt and and the remaining 60 percent is in the form of preference shares paying a fixed dividend of 12 percent. The total amount of debt is 8 million, consisting of two separate term loans. The first loan has a balance of 6 million and charges interest at 8 percent. The second term loan has a balance of 2 million charging interest at 10 percent. The corporate tax rate for Brian Logistics is 30 percent. What is their cost of capital?