Perfect Packers Ltd. has the following capital structure:

All figures in Australian Dollar

Capital Structure

Equity capital ($ 10 par value) $200,000

14% Preference share capital $ 100 each $100,000

Retained earnings $100,000

12% debentures ($ 100 each) $300,000

11% Term loan from Westpac bank $50,000

Total $750,000

The market price per equity share is $ 32. The company is expected to declare a dividend per share of $ 2 per share and there will be a growth of 10% in the dividends for the next 5 years. The preference shares are redeemable at a premium of $ 5 per share after 8 years and are currently traded at $ 84 in the market.

Debenture redemption will take place after 7 years at a premium of $5 per debenture and their current market price is $ 90 per unit. The corporate tax rate is 27.5%.

Required: Calculate the Weighted Average Cost of Capital (WACC).