5. The following statement of financial position information relates to Tufa Co, a company listed on a large stock market which pays corporation tax at a rate of 30%. Sm Sm Equity and liabilities Share capital Retained earnings 17 15 32 Total equity Non-current liabilities Long-term borrowings Current liabilities 13 21 34 Total liabilities Total equity and liabilities 66 The share capital of Tufa Co consists of $12m of ordinary shares and $5m of irredeemable preference shares. The ordinary shares of Tufa Co have a nominal value of $0-50 per share, an ex dividend market price of $7-07 per share and a cum dividend market price of $7:52 per share. The dividend for 20X7 will be paid in the near future. Dividends paid in recent years have been as follows: Year 20x6 20x5 20x4 20x3 Dividend (S/share) 5-43 5:41 1-39 5:37 The 5% preference shares of Tufa Co have a nominal value of S0-50 per share and an ex dividend market price of $0-31 per share. The long-term borrowings of Tufa Co consist of S10m of loan notes and a $3m bank loan. The bank loan has a variable interest rate. The 7% loan notes have a nominal value of $100 per loan note and a market price of $102-34 per loan note. Annual interest has just been paid and the loan notes are redeemable in four years' time at a 5% premium to nominal value. Required: (a) Calculate the after-tax weighted average cost of capital of Tufa Co on a market value basis