The Capital structure of Sehedev Ltd in book value is as follows:

Equity Capital $(20$ million shares Rs$.10$ par$)$

Preference Capital, $12\%(500000$ shares, Rs$.100$ par$)$

Retained Earnings

Debenture $14\%(1200000$ debentures, Rs$.100$ par$)$

Term Loans, $13\%,14$

Total

Rs$.200$ million

Rs$.50$ million

Rs$.350$ million

Rs$.120$ million

Rs$.80$ million

Rs$.800$ million

The next expected dividend per share is Rs$\mathrm{.}2\mathrm{.}00.$ The dividend per share is expected to grow at the rate of $12$ percent. The market price per share is Rs$\mathrm{.}50\mathrm{.}00$ Preference stock, redeemable after $10$ years, is currently selling for $85\mathrm{.}00$ per share. Debentures, redeemable after $5$ years, are selling for $90\mathrm{.}00$ per debenture. The tax rate for the company is $30$ percent. Calculate the average cost of capital.