The following information was extracted from the books of bano LTD.

Ordinary shares shs. 250 per value= 800

8% preference shares (shs.240 par value)= 600

20% bank loan = 600

20% debentures (shs.100per value) = 400

Assume any cost above is pre-tax

The company pays corporation tax of 40% . You are further informed that;

1. The market price of ordinary share is shs.310 each which includes shs 10 each in floation costs.

2. The 8% preference shares sell at 200 each

3. The 20% bank loan was obtained on December 2014

4. The 20% Debentures were issued in 2003 and currently sell at shs.250 each.

5. Ordinary shareholders expect Cash dividends of shs. 30 per share and a capital appreciation of shs. 12 per share at the end of every year.

Required;

Compute the company's weighted costs of capital (WACC)