Hey guys, I need some assistance with the following case.

I need to work out what the firms cost of capital is based on the following changes. Obviously initially the target capital was 20 mil bonds / 2.5 mil preference shares / 5 mil ordinary shares, however what kind of calculations should I do in order to work out the current value of these variables?

I basically need to know the new target capital and then calculate the WACC based on that. Any help would be much appreciated.

*MML has not recalculated its cost of capital in the last year or so. Our present market value capital structure is considered optimal. We issued bonds 5 years *

*ago with a total face value of $20 million and a fixed annual coupon rate of 12%.*

*The bonds now have 10 years left to maturity and trade at 110% of their face value. The company also has preference share capital. There are half a million preference shares outstanding with a par value of $5 each but they are currently trading for $6 each. The annual dividend on the preference shares is 70 cents pershare. Our ordinary shares have risen in price from $4 when they were originally issued to a current market price of $15. There are currently 5 million ordinary shares outstanding and in the past year we paid 80 cents in dividends per share.*