5.2 REQUIRED Use the Gordon Growth Model to estimate the cost of the ordinary shares (expressed as a percentage to two decimal places) from the information provided below. (4 marks) INFORMATION The market value of a Fitch Limited ordinary share is R60. The dividend at the end of the previous year was R9 and the expected growth rate in dividends is 10% p.a. 5.3 REQUIRED Use the information provided below to calculate the weighted average cost of capital (expressed as a percentage to two decimal places). (4 marks) INFORMATION The optimal capital share of Yoko Limited is 60% ordinary share, 30% preference share and 10% debt financing. The pre-tax costs of capital for ordinary shares, preference shares and debt are 19%, 16% and 20% respectively. The tax rate is 27%.