ABC Ltd. has the following book- value capital structure as on March 31, 2013 Equity share capital (2, 00,000 shares) =Rs 40, 00,000 11.5% preference shares Rs 10, 00,000 10% debentures Rs 30, 00,000 TOTAL: Rs 80, 00,000 The equity share of the company sells for Rs 20. It is expected that the company will pay next year a dividend of Rs 2 per equity share, which is expected to grow at 5% p.a. forever. Assume a 35% corporate tax rate. Compute weighted average cost of capital (WACC) of the company based on the existing capital structure.