their present capital structure is as follows: 800 000 R2 ordinary shares nowtrading at R2.50 per share, 250 000 preference shares trading at R2 per share (issued at R3 per share), 10% fixed rate of interest, a bank loan of R1500 000 at 13% per annum (payable 5 years time). Additional company's beta 1.3 the return on the market is 14% and risk free rate 7%. its current tax rate 28%. its current dividend is 40c per share and it expects its dividend to grow by 8% per annum. Required. Assuming that company uses dividend growth model to calculate its cost of equity. calculate its weighted average cost of capital. further R500 000 is needded to finance the expansion which option should they use from ordinary share, preference shares or loan and why?