4 OF 5 QUESTIONS REMAINING\ ABC Ltd has the following capital structure:\ Book Value\ 7.7% Equity Capital\ shares of

$10

each)\

500,000

\ 13% Preference capital\ (1000 shares of

$100

each)\

100,000

\ Reserves and Surplus\

300,000

\ 12% Debentures\ (3000 debentures of

$100

each)\

300,000

\

1.200,000

\ You are required to compute the weighted average cost of capital for the existing capital structure