Toys R us $($Pty$)$ Ltd is an international company with headquarters in Parsippany$-$Troy Hills, New Jersey, in the New York metropolitan area. It$$s an American toy, clothing, and baby product retailer owned by Tru Kids $($doing business as Tru Kids Brands$)$ and various others. The business has expanded into third world countries starting with a branch in Cape Town, South Africa. The business has a capital structure of $100000000$ R$1$ ordinary shares, market price R$1,50.$ Their preference shares are $8000000010\%$ R$1$ preference shares, market price R$2.$ They have a received a bank loan from HSBC Bank of R$50000000010\%.$ Debentures $25000000$ at par value $10,5\%$ market price R$110($issued at R$100).$

In order to equalise the tax effect, the debenture and bank loan interest weighting is reduced by multiplying it by $1$ minus the given corporate tax rate $(27\%).$

The current and expected future rate of ordinary share dividends is $10\%.$

REQUIRED:

a$)$ Calculate the overall market value showing the proportional breakdown$(5)$

b$)$ Calculate overall cost using the Dividend Discount Method $(5)$

c$)$ Calculate the Weighted Average Cost of Capital $($WACC$)(5)$