The 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 shares were issued at 10% preun floatation cost being Rs.22 per share. Debentures, redeemable after 6 years at 10% premium were issued at par, floatation cost being Rs 10 per debenture. The tax rate for the company is 50%

Compute the weighted average cost of capital for the firm.

Equity Capital (9.6 million shares of Rs. 10 each) 11% Preference Capital (2.40,000 shares, Rs. 100 par) 13% Debentures (4.00.000 debentures, Rs. 100 par) TOTAL Rs.9,60,00,000 Rs.2,40,00,000 Rs.4,00,00,000 Rs.16,00,00,000