1. Dale has the following sources of long-term finance:

   	Book value
   Ordinary shares (par value 1 per share)	2,000,000
   Debentures (par value 1,000 per bond)	1,000,000
   Total	3,000,000

   Dale Plc's ordinary shares are currently priced at 3.00 per share in the market, and the current bond price per 1,000 is 1,500.

   The company's cost of equity is 10% and the cost of debt is 6%.

   Calculate Dale Plc's weighted average cost of capital (WACC).

   		8.7%
   		8.8%
   		8%
   		9.2%