Equity Capital Q3. International Foods Limited has the following capital structure: Market Value 450,000 Book Value 250,000 (25,000 shares of $10 each) 13% Preference capital 50,000 45,000 (500 shares of $100 each) Reserves and Surplus 150,000 0 12% Debentures 150,000 145,000 (1500 debentures of $100 each) 600,000 640,000 The expected dividend per share is $1.40 and the dividend per share is expected to grow at a rate of 8% forever. You are required to compute the weighted average cost of capital for the existing capital structure using book values and market values as weights