1. Solve the following:( 10m) SOURCE OF CAPITAL BOOK VALUE(MILLION) EQUITY SHARES (10MILLION SHARES 100 ,10/- PAR) 11%PREFERENCE SHARES (1,00,000 10 SHARES@ 100 EACH) RETAINED EARNINGS 120 13.5% DEBENTURES(5,00,000@ 100 50 EACH) 12% TERM LOANS 80 The next expected dividend per share is 1.50/-. The dividend per share is expected to grow at the rate of 7%.the market price per share is 20/- Preference stock redeemable after 10 years is currently selling at 75/- per share. Debentures redeemable after 6 years are selling for 80/- per debenture. The tax rate of the company is 50%. Calculate WACC using: a) Book value proportions b) Market value proportions