Case - 2 Notes XYZ Ltd. has following book value capital structure: Particulars (` Crores) Equity capital (` 10 per share fully paid up at par) 15 11% Preference capital (` 100 per share, fully paid up at par) 1 Retained earnings 20 13.5% debentures (of ` 100 each) 10 15% term loans 12.5 The next expected dividend on equity shares per share is ` 3.60 and the dividend per share is expected to grow at the rate of 7%. The market price per share is ` 40 Preference stock, redeemable after 10 years is currently selling at ` 75 per share. Debenture redeemable after six years are selling at ` 80 per debenture. Required to calculate weighted average cost of capital using a) Book value proportions b) Market value proportions