1) Cheeta Corp currently has $50 million debt, $50 million preference shares and $100 million shareholders' funds in its balance sheet. Its debt comprises a 6% semi-annual coupon bond maturing in 20 years' time. The bond is currently traded at $945. Cheeta's 5% preference shares, which were issued at $100, are currently traded at $75. Its outstanding 3.5 million shares currently sell for $20 per share and pay dividends of $1.2. The company is regarded as a mature stock whose beta is 0.92. The current risk free rate is 4% while the long-term market return is 10%. The corporate tax rate is 22%. Cheeta's weighted average cost of capital (WACC) is