Angel A Plc has in issue 8 million shares with an ex-dividend market value of 6.87 per share. A dividend of 67 pence per share for 2019 has just been paid. The pattern of recent dividends is as follows: Year 2016 Dividends per share (pence) 58.2 2017 60.9 2018 63.2 2019 67.0 Angel A Plc also has in issue 8.5% bonds redeemable in five years' time with a total nominal value of 5 million. The market value of each 100 bond is 103.42. Redemption will be at nominal value. Angel A Plc pays profit tax at a rate of 30% per year and has an equity beta of 1.8. Required: a) Calculate the cost of equity of Angel A Plc using the dividend growth model and use the information available to comment on the risk level of the company. (15 marks)