The following figures are from the current balance sheet of XYZ plc

In $000

ordinary share capital authorise; 10,000,000 shares off 1 each10,000

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issued; 8 million shares of 1 each8000

share premium account 2000

revenue reserves 6000

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shareholders' funds16,000

12% irredeemable debentures4000

An annual ordinary dividend of 0.20 per share has just been paid. In the past, ordinary dividends have grown at a rate of 10% per annum and this rate of growth is expected to continue. Annual interest has recently been paid on the Deb and yours. The ordinary shares are currently quoted at 2.75 and the debentures at 60 pounds percent.

Q: Estimate the weighted average cost of capital for XYZ plc.