KPI plc which pays corporate tax at 30% has the following capital structure: - Ordinary shares: 1000000 ordinary share of nominal value 25p per share. The market of the share is 79p per share. A dividend of 6p per share has just been paid and dividend are expected to grow by 5% per year for the foreseeable future. - Preference share: 250000 preference shares of nominal value 50p per share. The market value of the shares is 42p per share and the annual net dividend of 7.5% has just been paid. - Bonds: 100000 of 7% irredeemable bonds with a market price of 92 per 100 par. The annual interest payment has just been made. Required: Calculate the weighted average cost of capital of KPI plc. (Total 30 marks) KPI plc which pays corporate tax at 30% has the following capital structure: - Ordinary shares: 1000000 ordinary share of nominal value 25p per share. The market of the share is 79p per share. A dividend of 6p per share has just been paid and dividend are expected to grow by 5% per year for the foreseeable future. - Preference share: 250000 preference shares of nominal value 50p per share. The market value of the shares is 42p per share and the annual net dividend of 7.5% has just been paid. - Bonds: 100000 of 7% irredeemable bonds with a market price of 92 per 100 par. The annual interest payment has just been made. Required: Calculate the weighted average cost of capital of KPI plc. (Total 30 marks)