A$.$ Calculate the cost of equity financing using the capital asset pricing model $($CAPM$)$:

$$ Given: Risk$-$free rate $=3\%,$

$$ Market risk premium $=6\%$

$$ Beta of the company's stock $=1\mathrm{.}2.$

$(05)$

B$.$ Determine the WACC for a company with the following capital structure:

$$ Equity: R$500000$

$$ Cost of equity $=10\%$

$$ Debt: R$300000$

$$ After$-$tax cost of debt $=4\%$

$$ Preferred stock: R$200000$

$$ Cost of preferred stock $=7\%(10)$