The following data are available for Holmes $($Pvt$)$ Ltd: Share capital $500000$ ordinary shares of $$1$ each fully paid $1500006\%$ preference shares of $50$ cents each fully paid Reserves: Share premium account $$100000$ Profit and loss account $$240000$ Loan capital $12500010\%$ debentures In the stock market Holmes$$ shares and debentures are currently quoted as follows: Ordinary shares $$1,30$ each Preference shares $$0,40$ each Debentures $$167\%$ Holmes distributes all of its profits, which have been constant for some time, and the current ordinary dividend is $20\%.$ REQUIRED: Calculate the average cost of capital. Ignore costs of issuing securities