The V/P of Finance of City Bank Share Company wants to know the banks Cost of capital to open and operate in Ethiopia and ordered Mss. Berry an MBA graduate from Imperial College of London with distinction in 2017. She started looking the record and has the following informations: A 15-year bond pays an annual coupon rate of 13%, bond sells for Br.2, 160, 000. The bank want to sell a preferred stock price Br.190.65 and dividend of Br.31 per share. If the common stocks risk free rate of return is 8%, the market rate is 15% and the firms beta is 1.9. The stock paid dividend last year Br.7.26, the price of Br.89 per share and dividend grows at 9%. The cost of debt and risk premium can be computed from the data. The companys balance sheet indicates long-term debt of Br.35million, preferred stock of Br.25million and common stocks of Br.40million. Corporate income tax rate is 30%. Required: What will be the component cost of capital and weighted average cost of capital for the Bank?