You have just the following information about ABC Ltd, which pays tax @ 35% p.a. (i) 7000 Bonds with 8% coupon, face val

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You have just the following information about ABC Ltd, which
pays tax @ 35% p.a.
(i) 7000 Bonds with 8% coupon, face value of $1000 & maturity
period of
15 years, payments to be made semi-annually, currently sold at 90%
of par value.
(ii) 300,000 common shares outstanding, currently selling at $ 60
per share having beta of 1.10.
(iii) 20,000 outstanding shares of $6 preferred shares, selling at
$95 per share.
Required: Work out overall cost of capital assuming 7% market
risk premium and 5% risk free rate of return.