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Please assist on answering all the questions below. You have been appointed as a financial consultant by the directors of Baron Holdings. They require you

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Please assist on answering all the questions below.

You have been appointed as a financial consultant by the directors of Baron Holdings. They require you to determine the cost o capital of the company. The following information is available on the capital structure of the company: U 1500000 ordinary shares, with a market price of R3 per share. The latest dividend declared was 86 cents per share. A dividend growth of 15% was maintained for the past 5 years. 100000011%,R1 preference shares, with a market value of R3 per share. R1 0000009%, debentures due in 7 years and the current yield-to-maturity is 10%. Note that the current price of the debenture is R951356 R700 000 14\%, bank loan, due in December 2021. Additional information: - The company has a tax rate of 30%. - The beta of the company is 1.7 , a risk free rate of 5% and the return on the market is 14%. Required: 2.1 Calculate the weighted average cost of capital. Use the Gordon Growth Model to calculate the cost of equity 2.2 Calculate the cost of equity, using the Capital Asset Pricing Model

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