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The Kay Company has the following Capital structure as at 31stMarch, 2019. Based on Book ValueBased on Market Value % Costs Debentures 300,000330,000 7 Preference

The Kay Company has the following Capital structure as at 31stMarch, 2019.

Based on Book ValueBased on Market Value % Costs

Debentures 300,000330,000 7

Preference 100,000110,000 9

Equity 1,500,000 1,700,000 15

Debt 200,000180,000 10

Required :

Determine the Weighted Average cost of capital using :

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