XYZLtd. has the following book value capital structure: *15 crores Equity Capital (in shares of R10 each, fully paid up-at par) 11% Preference Capital (in shares of 100 each, fully paid up-at par) 1 crore Retained Earnings *20 crores 13.5% Debentures (of 100 each) *10 crores 15% Term Loans *12.5 crores The next expected dividend on equity shares per share is 3.60; the dividend per share is expected to grow at the rate of 7%. The market price per share is 40 Preference stock, redeemable after ten years, is currently selling at 75 per share. Debentures, redeemable after six years, are selling at 80 per debenture. The Income tax rate for the company is 40%. 0 Required Calculate the current weighted average cost of capital using: (a) book value proportions; and (b) market value proportions. i) Define the weighted marginal cost of apital schedule for the company, if it raises *10 crores next year, given the following information: (a) the amount will be raised by equity and debt in equal proportions; (b) the company expects to retain 1.5 crores earnings next year, (c) the additional issue of equity shares will result in the net price per share being fixed at *32; (d) the debt capital raised by way of term loans will cost 15% for the first * 2.5 crores and 16% for the next 2.5 crores