WACC Confusion.

Following is the question:

Ingham’s plc capital structure is as follows:
50c ordinary shares = $12m
8% $1 preference shares = $6m
12.5% loan notes 20X6 = $8m

The loan notes are redeemable at nominal value at 20X6. The current market prices of the company’s securities are as follows:

50c ordinary shares = 250c
8% $1 preference shares = 92c
12.5% loan notes 20X6 = $100

The company is paying corporation tax at rate of 30%. The cost of company’s ordinary equity capital has been estimated at 18% pa.

What is the company’s weighted average cost of capital for capital investment appraisal purposes?

(End of Question)

Now I get it that the formula to solve this question is

(Ve/Ve +Vd +Vp) x Ke +(Vp/Ve +Vd +Vp) x Kp + (Vd/Ve+Vd+Vp) x Kd(1-T)

But still this formula is not giving me the right answer. I don’t know whether I’m putting the formula wrong or values.
Can anyone tell me its solution with clear workings so that I can understand the answer to this question.

I will be very thankful to the person who solves this for me. It’s correct answer is 16.29%

Awaiting for response.

Thanks.