Alex Ltd want to expand their office leasing business, which they calculate will cost them 6 million. They are trying to decide whether to issue more shares in their company or to ask the bank for an additional loan. Before doing so, they would like you, as their financial consultant to first advise them on the Weighted Cost of Capital as well as the weighted cost of each component.

At the moment, Alex Ltd have two long-term loans with the bank; one for 6 million and a second long-term loan for 2 million. Both bear interest at 5%. They have also issued 1 million shares in their company to investors, with a par value of 1. The shares are presently trading on the stock exchanged at 3 per share. The tax rate is 30%.

Calculate the weighted average cost of capital, including the weighted cost of each component. Do not round until the last figure and then round to 2 decimal places.