AX Co. needs financing a new project. Issue costs would be 3% of market value for a new bond issue, $0.2 per share for ordinary shares, $0.1 per share for preference shares. The ordinary share dividends for next year will be $0.5 and are projected to have an annual growth rate of 5%. What is the weighted cost of capital if the firm finances in the proportions shown in the financing structure table? Market prices are $101 for bonds, $5 for preference shares and $10 for ordinary shares. There will be $25,000 retained profits available. The company tax rate is 30%. Financing structure table for the new project of AX Co. Type of financing Percentage of financing Bonds (8%, $100 par, 5-yeare maturity) Preference shares (4,000 shares outstanding, $0.3 dividend per share) Ordinary equity Total 40 20 40 100