Dynamic World Vista Industries (DWVI) wishes to estimate its cost of capital for use in analyzing projects that are similar to those that already exist. The firm's current capital structure, in terms...

Dynamic   World   Vista   Industries (DWVI) wishes   to  estimate   its  cost  of  capital   for  use  in analyzing  projects  that are similar   to those  that already  exist.  The firm's  current  capital  structure, in  terms  of  market   value,  includes   30  percent   corporate   bond,   10 percent   irredeemable    loan notes,  10 percent  preference  shares  and 50 percent  ordinary  shares.

The  firm's   corporate  bond  has  an average  yield  to maturity  of  8.3  percent.  DWVI  also  has  an irredeemable   loan  notes  currently   trading   at  GHc  40  ex  interest   an  interest   rate  of  five  (5) percent.  Its preference  shares  have  a Gllc  70 par value,  an 8  percent  dividend,  and  are currently selling  for GHc  76 per  share.  DWVI's   beta is  1.05, return  on riskless  asset  is 4 percent  and the return on the GSE  (the market  proxy)  is 11.4 percent.  The industry  is in the 40 percent  marginal tax bracket.

Required:

a) What are DWVI's  pre-tax  costs of debts,  preference  shares  and ordinary  shares?