The Malcolm Ski Resort is looking to determine its cost of capital and has asked you to assist. Information available includes the following: Preference Shares: The preference shares were issued for $30 with a 15% dividend. The current market price is $27.5. When they were initially issued, they issued $200m worth of shares. Debt: The debt that the firm has issued was issued 20 years ago and has 7 years left to maturity. The bonds pay a semi-annual coupon of 9% par. The bonds were issued for $1000 each are currently valued at $1000 each. 20 years ago $150,000,000 worth of debt was issued Ordinary Shares: - The company has 225 million ordinary shares on issue with a market price of $1.85 each. - The Beta of these shares is .9, the market risk premium is 6% and the risk free rate is 2%. - These shares last paid a dividend of 25 cents with expected growth of 2%. Other Information: The tax rate is 30%. Calculate the following: Determine the weight of debt, ordinary equity and preference equity to be used in the calculation of the after tax WACC. ( 3 Marks) Please answer as a decimal to 4 decimal places. Answers: Weight Debt Answer: Weight Ordinary: Weight Preference