There are 6 million ordinary shares. Analysts consider it normal to double your money in four years in this industry. The shares last traded at $11.00 per share. An overdraft of $15 million attracts an interest rate of 6% pa compounded monthly. 90-day bank bills have just been issued with a Face Value of $20m and yield of 4% pa. Bonds exist with a total face value of $30m, a market value of $30m, a coupon of 5% pa paid semi-annually and 10 years to maturity. The company accounts show $4m in retained earnings and $3m in trade credit (accounts payable). The corporate tax rate is 30%.

Calculate the Weighted Average Cost of Capital on an after-tax basis. Explain and defend your treatment of Retained Earnings and Trade Credit.

Need full answer and not in excel