QUNTING AND FINANCE

$12.$ Self$-$Assessment Question

unimate Braal Ltd$.$ has the following capital structure:

Equity: $,2000000R2$ ordinary shares, market price $R2,50$

Preference: $100000012\%$ R$1$ preference shares, market price R$1,20$

Reserves: R$1500000$

Bank loan: $,R50000015\%$ bank loan

Debentures: R$175000016\%$ debentures, market price R$110($issued at R$100).$ The current and expected future rate of ordinary share dividend is $20\%.$

What is the firm's weighted average cost of capital?