ABC has the following capital structure as per its balance sheet as at 31st march, 2009

Equity share capital(fully paid shares of Rs10 each) : 8 Lakhs

20% preference shares capital (fully paid shares of Rs 100 each): 4 Lakhs

12.5% debentures (Fully paid of Rs 100 each) : 8 Lakhs

Total: 20 Lakhs

Additional Information:

a. The current market price of the company equity share is 64.25. The dividend expected on the equity share at the end of year is at 80% which is expected to grow @5%pa forever.

b. The preference shares of the company which are redeemable after 10 years are currently selling at Rs90 per preference shares.

c. The debentures of the company which are redeemable after 5 years are currently quoted at Rs 90 per debentures

d. The corporate tax rate is 40%.

Calculate weighted average cost of capital using book value weights.