Vici Corp, based in the UK is a rapidly growing producer of circuit boards used in the electronic industry. The following are securities used by the company to finance its operations:

a) 400,000 ordinary shares, issued at a par value of £10, market price of one share is £36. The beta of the company is 1.20, and the expected return on the market is 12% per annum. The company has just paid a cash dividend of £2 per share, and the dividend is expected to grow at a steady 5% per year.

b) An overdraft of £500,000. The current interest rate on the overdraft is 10% per annum, with interest calculated on a quarterly basis.

c) 5,000 corporate bonds with six years to maturity. The debentures offer a coupon of 8% per annum, paid half yearly, (the coupon is calculated on the face value). The face value of all the debentures is £5,000,000, and the current market interest rate for these securities is 10% per annum, calculated half yearly. The bond sells for £911.37 now.

d) One thousand (1,000) 7% preference shares issued at a par value of £100, the current market price of one preference share is £111.

The UK T-Bills are currently yielding 5% p.a. and corporate tax rate is 30%.

What is the WACC (after tax) of the company? [Show ALL your workings. WACC & Cost of Debt should be in market value, preferably show calculation using financial calculator for i and Cost of Equity should be calculated using Dividend Growth Model (DGM)]