A company has the following capital structure: 2,000,000 50p ordinary shares 1,000,000 1,000,000 6% 100p preference shares 1,000,000 5% irredeemable debentures 500,000 The ordinary shares are quoted at 124p cum dividend, and the dividend about to be paid is 13p per share. Dividends are expected to grow by 2 per cent every year. The preference shares are quoted at 63p and the debentures 72. The preference dividend and interest has just been paid. Corporation tax is 30 per cent. Calculate cost of capital. Ana