market value

The following are extracts from the statement of financial position of a company:
$’000 $’000
Equity
Ordinary shares 8,000
Reserves 20,000
28,000
Non-current liabilities
Bonds 4,000
Bank loans 6,200
Preference shares 2,000
12,200
Current liabilities
Overdraft 1,000
Trade payables 1,500
2,500
42,700
The ordinary shares have a nominal value of 50 cents per share and are trading at $5.00 per share. The
preference shares have a nominal value of $1.00 per share and are trading at 80 cents per share. The bonds
have a nominal value of $100 and are trading at $105 per bond.
What is the market value based gearing of the company, defined as prior charge capital/equity?

why is prior year charge capital said in BPP kit that pref shares is 1.6m?