International Foods Limited has the following capital structure:

	Book Value	Market Value
Equity Capital (25,000 shares of $10 each)	250,000	450,000
13% Preference capital (500 shares of $100 each)	50,000	45,000
Reserves and Surplus	150,000	0
12% Debentures (1500 debentures of $100 each)	150,000	145,000
	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.