5) The directors of DELCO are considering opening a new factory to manufacture a new product at a cost of $3.0 million. During the last 5 years, the company has had $3 million shares in issue. The current market price of these shares (at 31 December 20X8) is $1.45 ex dividend The company pays only one dividend each year (on 31 December) and dividends for the last five years have been as follows Year Dividends per share (cents) 20X8 14.1 20X7 14.1 20X6 12.1 20X5 11.6 20X4 11.0 DELCO currently has in issue $1 million 8% debentures redeemable on 31 December 20Y2 at par. The current market price of these debentures is $83.60 ex interest and the interest is payable in one amount each year on 31 December. The company also has outstanding a $500000 bank loan repayable on 31 December 20Y7. The rate of interest on this loan is variable, being fixed at 14% above the bank's base rate which is currently 6%. a) Calculate the weighted average cost of capital (WACC) for DELCO as at 31 December 20X8