Capital Structure of Skyline Limited for the acquisition of new plant:

Ordinary Shares	$18 000 000
Preference Shares	$6 000 000
Bonds	$12 000 000

Finances sourced for the Acquisition of the new plant are as follows:

1. A 20-year bond with a coupon rate of 9% payable annually. The pre-tax cost of the bond issue is 13.5%;

2. Preference Share can be sold for $75.00 and each share will pay an annual dividend of $6.00;

3. The current risk-free rate of return is 4.75% and the expected annual return for the market is 10%. The beta for the stock is established as 1.40.

The tax rate of the company is 25%.

Compute the following using the information provided above:

The cost of preference shares;
The cost of issuing new ordinary shares; and
]The Weighted Average Cost of Capital.

Skyline Limiteds ordinary share was last traded at $5. The company paid a dividend of $0.10 per share last year. The market expects the stock to grow by 5% per year into the foreseeable future. Assuming the Capital structure of the company is now 30% Bonds, 25% Preference Share and 45% Ordinary Shares. Using Dividend Growth Model, what is the new WACC