Assume the following information for a company

(a) There are 25 million ordinary shares. The last dividend paid was $0.60 per share and this is expected to grow at 5% per annum indefinitely. The shares have a required return of 15% pa.

(b) An overdraft of $15 million attracts an interest rate of 9% per annum.

(c) Bonds exist with a total face value of $30m, a coupon of 8% pa paid semi-annually and 5 years to maturity. Their current market yield is 10% pa compounded semi-annually.

(d) The corporate tax rate is 36%.

Calculate the Weighted Average Cost of Capital on an after tax basis.