Question 03 : The long term capital structure of Perth Led is shown below . Share Capital ( 100, 000 Ordinary shares) $100, 000 General Reserve 10, 000 Retained Earnings's 40, 000 50, 000 10#`Mortgage Loan 171 , 391 12% DEbentures ( $ 100 Face Value*) 35, 000 Perth Led pays tax at the rate of 27 . 5{` . The company estimates a dividend of 15 cents per share next year and dividends are expected to grow at EX per annum . The current share* price is $ 2.50 . The debentures are currently selling at $110 . 31 and mature in exactly three years time at par . Required : Calculate the following : ( a) Cost of mortgage finance . ( b ) Cost of debenture finance . ( C ) Cost of ordinary shares . ( d ) Cost of retained earnings . ( e ) The weighted average cost capital