1. From the following capital structure of a company calculate the overall cost of capital using (a) Book value weights and (b) Market value weights (b) Computation of Weighted Average Cost of Capital [Market value weights] Source (1) Equity share capital Preference share capital Debentures Amount After tax cost (2) $ (3) 90,000 14% 10,000 10% 30,000 5% Total after tax $ Cost (4) = (2) x (3) 12,600 1,000 1,500