Calculate the Weighted Average Cost of Preference Shares and Ordinary

Multiple Choice

Calculate the weighted average cost of preference shares and ordinary shares if there are: 1 million preference shares with market value of $2.50 each and an opportunity cost of 10.8%;10 million ordinary shares with market value of $4.50 each and an opportunity cost of 16.5%.

A) 15.4%
B) 16.9%
C) 16.2%
D) None of the given options.