Canada Cranes is looking to determine its cost of capital and has asked you to assist.

Information available includes the following:

Preference Shares:

• The preference shares were issued for $30 with a 5% dividend. The current market price is $16.
• There are 20 million shares on issue

Debt:

• The debt that the firm has issued was issued 10 years ago and has 10 years left to maturity. The bonds pay monthly coupon of 12% pa. The bonds were issued for $1000 each and are currently valued at $1000 each.
• There are 100,000 bonds on issue

Ordinary Shares:

• These shares currently trade for $5.
• The Beta of these shares is 1.25, the market risk premium is 10% and the risk-free rate is 3%.
• These shares last paid a dividend of 50 cents with expected growth of 3%.
• There are 100 million shares on issue

Other Information:

• Canada Cranes tax rate is 20%.

E) Determine the weight of debt, ordinary equity and preference equity to be used in the calculation of the after tax WACC. (3 Marks) Please answer as a decimal to 4 decimal places.

Weight Debt :

Weight Ordinary :

Weight Preference :