Suppose company A has issued 10 million shares which are trading at GHS 50 each; 4 million preference shares at GHS 40 and 1,500 bonds at GHS 100,000 each.

What is this companys capital structure? How much must A generate annually to satisfy its 3 classes of investors if the coupon rate on the bonds is 20%, the dividend rate on the preference shares is 24% and equity holders require 30% on their investment? The companys tax rate is 30%. What is the weighted average cost of capital of A?