The preference shares are currently valued at 94 pence per share; the preference dividend is about to be paid and a premium of 3% is payable on redemption of the preference shares in nine yearstime.

The current cum-interest market price of the 3% irredeemable debenture for 100 nominal value is 52. The corporate tax rate faced by Newman Public limited Company is 40%; ignore personal tax.

Calculate the cost of each of the components of capital and the firms weighted average cost of capital.