The directors of Gilpitts Consulting recently had a board meeting and took the decision to expand their current operations. The board has asked for your expertise on how best to fund the expansion. The balance sheet extract prior to the expansion is as follows:

They provide you with the following additional information:

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The dividend per share last financial year was $150$ cents per share

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The dividend growth rate of the industry was $7\mathrm{.}25\%$

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The current share price on the stock exchange is trading at R$1\mathrm{.}425$ per share

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The beta for the company is $1\mathrm{.}375$

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Government bonds carry a return of $6\%$ and the additional risk for the average market is $4\mathrm{.}25\%$ above this.

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The preference share capital was issued at R$5$ per share. An annual $10\%$ dividend is paid at the end of each year. The shares are currently trading at R$5\mathrm{.}50$ per share.

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Debentures due in $7$ years with a before tax cost of $10\%$

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The company tax rate is $28\%.$

REQUIRED:

Calculate the cost of:

$1\mathrm{.}1$ Ordinary shares using the Capital Asset Pricing Model $(3)$

$1\mathrm{.}2$ Preference shares $(3)$

$1\mathrm{.}3$ Debt