The following information has been taken from the Statements of Financial Position

and Financial Performance for Ergo Ltd for the year ended $31$ December $2004.$

Retained earnings

$404,000$

ASSETS

LIABILITIES

SHAREHOLDERS FUNDS

Additional information

The nominal rate of interest on the bank overdraft is $10$ per cent per annum.

Interest is calculated monthly.

The debentures are currently selling at $$93\mathrm{.}50$ each and mature in four years

time.

The preference shares are currently selling at $$9\mathrm{.}50$ each.

The ordinary shares are selling at $$1\mathrm{.}20$ each. Dividends are expected to

grow at $5\%$ indefinitely.

The company income tax rate is $30$ cents in the dollar.

Using the above information, calculate the weighted average cost of capital for Ergo

Ltd$.$ Show all workings $($use $2$ decimal places$).$