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The following table displays information about the shares and bonds of Aber Plc, as well as the market. The percentage figures are expressed on an

The following table displays information about the shares and bonds of Aber Plc, as well as the market. The percentage figures are expressed on an annual basis. 

Risk-free rate0.2%
β0.8
Expected market return2.3%
Credit risk premium1.5%
Tax rate20%


Calculate Aber Plc's weighted average cost of capital (WACC) assuming the company wants to raise finance, 40% of which will comprise debt. Show your workings and round figures to two decimal points.

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