Q.3) The following is the capital structure of ABC Ltd.:

Source, Amount (Rs), %

Equity share capital (2,00,000 shares of Rs 10/- each) 20,00,000 11

Preference share capital (50,000 shares of Rs 10/- each) 5,00,000 8

Retained earnings 10,00,000 11

7.5% debentures of Rs 1,000 each 15,00,000 4.5

Presently the debentures are being traded at 94%, Preference shares at par and the equity shares at Rs 13/- per share. Find out the WACC based on the market values.