AB Corp would Ike to establish the cost of capital to use an appraising investment

opportunity. The financial manager has provided you the following financial

information:

Ordinary Shares $100,000,000$

Nominal value per share $0\mathrm{.}2$

Current quotation per share $5$

Current dividend per share $0\mathrm{.}40$

Dividend growth rate $5\%$

Preference share $($$$1)9,000,000$

Preference shares current quotation per share $0\mathrm{.}85$

Preference dividend $10\%$

Debentures $(7\%)500,000$

Debentures nominal value $100$

Debentures current quotation $66$

Corporate Tax $20\%$

Required:

Calculate AB Corp's

a$)$ Cost of equity

b$)$ Cost of preference share capital

c$)$ Cost of debentures

d$)$ Weighted average cost of capital $($WACC$)$