You have been given the following information concerning Ben and Jerrys capital structure.

• 1 million common shares outstanding and it issued 40,000 debentures (Bonds).
• Ben and Jerry distributed a $0.54 dividend last year and dividend is expected to grow at a steady rate of 5%. Closing Value of share on the London stock exchange is $25.
• The interest rate on debentures is 5%
• Tax rate is 20%

Calculate the following:

1. Cost of common equity, (3 marks)
2. Weight of debt, common shares and preferred shares, (3 marks)
3. Weighted average cost of capital WACC of Ben and Jerry. (4 marks)