The management of the company ABC wants to calculate the companys weighted average cost of capital. The relevant data pertaining to capital structure is as follows.

Rs. in million

18% preference shares (face value of Rs. 10 per share)	125
Equity share capital (face value of Rs. 10 per share)	385
Reserves	500
18% long-term loans	325
15% debentures	230
Total	1,565

The management of the company gathered following additional information.

Current ex-dividend preference shares price (Rupees)	12.5
Current ex-dividend equity shares price (Rupees)	28
Current ex-interest debenture market value (Rupees)	110
Equity beta of the company	0.8
Stock market risk premium	9.5%
Yield on long-term risk-free security	5.5%

The par value of the debentures is Rs. 100, which will be redeemed in 4 years and interest is paid on annual basis. The company uses a tax rate of 31%, ignoring flotation costs.