?Hellas Ltd operates in the fabrication industry. The company feels that some of its older gas welding machines need to be replaced and seek your help in order to calculate their cost of capital.

Their present capital structure is as follows:

$600000$ ?R$2$ ?ordinary shares now trading at R$2,40$ ?per share.

$200000$ ?preference shares trading at R$2,50$ ?per share $($issued at R$3$ ?per share$).10\%$ ?fixed rate of interest.

$$ ?A bank loan of R $1000000$ ?at $12\%$ ?p$.$a$.($payable in $5$ ?years time$).$

Additional data

$$ ?The company$$s beta is $1\mathrm{.}4.$ ?The return on the market is $15\%$ ?and the risk free rate is $6\%.$

$$ ?Its current tax rate is $28\%.$

$$ ?Its current dividend is $50$c per share and it expects its dividends to grow by $7\%$ ?p$.$a$.$

Required

Calculate its weighted average cost of capital using both methods of cost of capital.