The following information relates to GlobalBuilders Ltd (GB):

GB has 21,000 bonds outstanding with a face value (and market value) of $1000 each. The yield on the bonds is 6% p.a. GB has 5 million preference shares on issue, which are currently trading for $4.00 each. They pay an annual dividend of 45 cents. GB has 6 million ordinary shares on issue, which are currently trading for $4.80 each. The beta of these shares is 1.8; the riskfree rate of return is 3.5%; and the expected return on the market is 8.5%. The corporate tax rate is 30%.

Please answer the following questions and provide your response in the space below.

Part A, B, C, D, E and F (9 marks) Separately calculate the following components of Weighted Average Cost of Capital:

a. What is the firms cost of ordinary shares?

b. What is the firms cost of preference shares?

c. What is the firm's after-tax cost of debt?

d. What is the weighting of ordinary shares in the firms overall capital structure?

e. What is the weighting of preference shares in the firms overall capital structure?

f. What is the weighting of debt in the firms overall capital structure?