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Please provide and advice and any recommendations for the firm based on the following data?? WEIGHTED AVERAGE COST OF CAPITAL - SOLUTION SOURCE OF CAPITAL

Please provide and advice and any recommendations for the firm based on the following data??

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WEIGHTED AVERAGE COST OF CAPITAL - SOLUTION SOURCE OF CAPITAL COST VALUE ($000) WEIGHT Bank Loans Before-tax cost of bank loans 10.60% Market value of bank loans ($000) $576 17.7% Mortgage Loans Before-tax cost of mortgage loans 8.40% Market value of mortgage loans ($000) $354 10.9% Corporate Bonds Credit spread 377 basis points Credit spread as a percentage 3.77% Risk-free rate to be used to calculate cost of corporate be 2.78% Before-tax cost of corporate bonds 6.55% Face value of all bonds ($000) $740 Coupon rate 9.2% Number of coupon payments per year 4 Total number of coupon payments 28 Total value of coupon payments per year ($000) $68.08 Value of each coupon payment $17.02 Yield per coupon payment 1.6375% Value of corporate bonds ($000) $849 26.1% Ordinary Shares Risk-free rate to be used to calculate cost of ordinary she( 3.34% Beta 1.2 Market risk premium 8.77% Cost of ordinary shares 13.95% Number of ordinary shares (thousands) 500 Ordinary share price $2.32 Market value of ordinary shares $1,160 35.6% Preference Shares Preference dividend per share $0. 12 Preference share price $1.62 Cost of preference shares 7.41% Number of preference shares (thousands) 197 Market value of preference shares ($000) $319 9.8% $3,258 100.0% Tax Rate 20% Weighted Average Cost of Capital 9.3%

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