Tlc Motors Plc is a listed automotive company financed by a mixture of debt and equity. The company's finance department is about to undertake its annual revision of the weighted average cost of capital (WACC) for use in all of the company's investment appraisals for the forthcoming year. The following information on the company's long-term financing was available as at 31 May 2022

Em 220 million ordinary shares of 25 pence each 55 Share premium 23 Revaluation reserve 26 Retained earnings 33 12% loan stock (2024) 100