UCW Co wishes to calculate its current cost of capital for use as a discount rate in investment appraisal. The following financial information relates to UCWCC : The ordinary shares of UCW Co have an ex-div market value of $4.80 per share, and an ordinary dividend of 262 The preference shares of UCW Co are not redeemable and have an ex-div market value of 50 cents per share. The 7% bonds are redeemable at a 5% premium to their nominal value of $100 per bond and have an exinterest market value of $104.50 per bond. The bank loan has a variable interest rate that has averaged 4% per year in recent years. UCW Co pays profit tax at an annual rate of 30%. Required: (a) Calculate the market value-weighted average cost of capital of UCW Co. (20 marks)