lIIIUEBTICM'I 5 Weird Ltd is an unquoted company. The nance director. Mr Cook. has asked for your assistance in obtaining a cost of capital which Weird can use in appraising its bong-tem'i investment opportunities. Mr Cook has provided you with the following information regarding the capital structure of the company. 2m 25p ordinary shares valued at B?p. The annual dividend of 130,000 has just been paid and this is expected to grow at an estimated rate of 7.8%) 1m 9% preference shares with a nominal value of 101: each, valued [in tota at 71 .000 ex div E1m 8% debentures which are redeemable in 8 years' time at a premium of 5%. Mr Cook estimates that the debenture holders require a retum of 11%. Corporation tax is 35% Requirements: Calculate for Weird Ltd a) cost of equity share capital b) cost of preference share capital c} market value of debentures d] cost of debentures a) weighted average cost of capital And, f) Discuss 1WD practical problems that might be encountered when attempting to compute the WAGE: for a large UK listed company