Fleet Plc Question - calculating cost of equity the market value

Sir I have slightest of doubt in following question. QUESTION: The finance team of Fleet plc is undertaking a financial review of a potential new project. The new project is in the same industry as Fleet plc and the capital structure of the enlarged company will remain unchanged. The following details are available: The capital structure of Fleet plc as at 1st January 20X8 is as follows: £m Issued ordinary shares (25p shares) 250 Bank term loan 300 8% irredeemable debenture 600 The ordinary shares have a current market price of £2 each. Dividends per share in the five preceding years were as follows: 20X3 6.9 pence 20X4 7.2 pence 20X5 8.8 pence 20X6 9.6 pence 20X7 10.5 pence The dividend for 20X7 has just been paid. The bank is currently charging 10% on the term loan. The debenture stock has a market price of £75. The company pays corporation tax at a rate of 30%. Required: Calculate a suitable discount rate for the new project. ANSWER:(1) Ke ? DVM with growth Ke = Do*(1+g)/Po + g Ke =10.50 (1.11 )/200+ 0.11 = 16.83% Calculation of growth in dividends: 10.5/6.9^0.25 - 1 = 11% (2) Kd(1 - t) /irredeemable debt Kd(1 – t) = 8 × (1 – 0.3)/75 = 7.47% (3) Kd(1 – t) – bank term loan 10% (1 – 0.3) = 7% Doubt: Sir while calculating cost of equity the market value comes to $2000m rather than $200m and so the cost of equity to be 11.65% as a result . Isn't this a mistake in the answer. Moreover sir while calculating irredeemable debenture why its cost had been grossed up by dividing it by 75%.I got 5.6% simply by accounting for tax relief of 30% on 8%.Thankyou