Determine the weighted average cost of capital using i) book value weights; ii) market value weights

based on the following information: Book value structure Rs. Debentures (Rs.100 per debenture) 8,00,000 Preference share (Rs. 100 per share) 2,00,000 Equity share (Rs. 10 per share) 10,00,000 20,00,000 Recent market price of all these securities are: Debentures: Rs. 110 per debenture Preference share: Rs. 120 per share and Equity share: Rs.22 per share External financing opportunities are: a. Rs. 100 per debenture redeemable at par, 10 year maturity,13% coupon rate, 4% floatation cost and sale price Rs. 100 b. Rs.100 per preference share redeemable at par, 10 year maturity, 14% dividend rate, 5% floatation cost and sale price Rs. 100 and c. Equity share Rs. 2 per share flotation costs and sale price Rs.22, Dividend expected on equity share at the end of the year is Rs.2 per share; anticipated growth rate in dividend is 7%. Company pays all its earnings in the form of dividends. Corporate tax rate is 50%.