Neo Resources is seeking to invest R$10$ million in a new mining project to expand its gold production capacity. the management of the company prefers to maintain the present $35\%$ debt, $55\%$ equity and $10\%$ preference shares capital structure. debt financing can be obtained by issuing a $5-$ year R$1000$ bond. the current price of bond is R$1123$ and pays $10\%$ coupons. Neo Resources has a beta of $1\mathrm{.}3.$ the expected return on the market portfolio is $16\%$ and the current risk free rate is $8\%.$ the company is contemplating issuing $10\%$ preference shares, which are expected to sell for a par value of R$60$ per share. the cost of issuing and selling the share is expected to be $5\%$ the tax rate is $29\%$ Required $1\mathrm{.}1$ calculate Neo resources's components costs $1\mathrm{.}2$ calculate the company's weighted average cost of capital.