Surya Ltd. has the following book value capital structure: Million (Rs.) Equity Capital (10 million shares, Rs.10 par) 100 Preference Capital, 11% (100000 shares Rs.100) 10 Retained earnings 120 Debentures, 13.5% (500000 debentures Rs.100) 50 Term loans 12% 80 360 The next expected dividend per share is Rs.1.50. The dividend per share is expected to grow at the rate of 7%. The market price per share is Rs.20. Preference stock, redeemable after 10 years is currently selling for Rs.75 per share. Debentures, redeemable after 6 years are selling for Rs.80 per debenture. The tax rate for the company is 50%. Calculate the weighted average cost of capital using: 1. Book value proportions and 2. Market value proportions