You are required to determine the WACC (Ko) of L.C Ltd. using i) book value weight and ii) market value weights. The following information is available at your perusal. The L.C Ltd.s present book value structure is : (7 marks) Debentures (Rs.100 per debenture) Rs.8,00,000 Preference Shares (Rs. 100 per share) Rs.2,00,000 Equity Shares (Rs.10 per share) Rs.10,00,000 Rs.20,00,000 All these securities are traded in the capital markets. Recent prices are debentures @Rs.110, preference shares @Rs.120 and equity shares @Rs.22. Anticipated external financing opportunities are: i) Rs.100 per debenture redeemable at par: 20-year maturity, 8% coupon rate, 4% flotation cost, sale prices Rs.100. ii) Rs.100 preference share redeemable at par: 15-year maturity, 10% preference cost of capital, 5% floatation cost, sale price Rs.100 iii) Equity shares Rs.2 per share flotation cost, sale price Rs.22. In addition, dividend expected on equity share at the end of the year is Rs.2 per share; the anticipated growth rate in dividend is 5% and the company has the practice of paying all its earnings in the form of dividends. The corporate tax rate is 50%.