14. A company has the following capital structure. at the end of 31 March 2013:

Share Capital Reserve Long-term loans (**million) 6,808 34,857 538,220 The company's EPS, DPS, average market price and ROE for last seven years are given below: Year EPS DPS AMP ROE 2007 21.55 5.28 143.04 20.9 2008 22.14 5.76 187.52 18.6 2009 26.40 5.76 312.32 11.7 2010 20.16 6.53 587.52 11.0 2011 20.40 7.68 366.72 9.5 2012 23.09 11.53 416.64 10.3 2013 22.00 7.68 355.20 8.4 Note: EPS, DPS and AMP have been adjusted for bonus issues. You are required to calculate:

(a) growth rate g. using alternative methods;

(b) cost of equity, using dividend-growth model, and

(c) weighted average cost of capital, using (i) book-value weights and (ii) market-value weights. Assume that the interest rate on debt is 11 per cent and the corporate income tax rate is 35 per cent.