1500 000 ordinary shares with a market price of R 3 per share. the latest dividend declared was 90 cent per share. A dividend growth of 13% was mantained gor the past 5 years.

1000 000 depentures due in 7 years with a current market value of R 951 356 and a before tax cost of 10%

R700 000 (14%) Bank loan

calculate the wwghted average cost of capital

calculate the cost of equity using the capital asset pricing model