Tristar LimitedTristar Limited, a construction company, is experiencing rapid growth and needs capital funding. The company is considering incurring additional debt to finance the expansion and would like to determine how it will impact the company's weighted average cost of capital.Currently, $5000$ bonds with a par value pf R$2000$ each is in issue. The bonds were issued $2$ years ago at a $13\mathrm{.}75\%$ coupon interest rate and is redeemable in three years' time. The market related interest rate is $12\%.$Equity comprises ordinary and preference shares. The company has $500000$ ordinary shares in issue, with no par value. These shares are currently trading at R$30$ per share. The beta for the shares is $1\mathrm{.}50$ and the expected market return is $14\mathrm{.}5\%.100000$ irredeemable preference shares were issued at R$50$ per share and pays a dividend of R$8$ per share. These shares are currently trading at R$64$ per share.The risk$-$free rate of return is $8\mathrm{.}5\%$ and the tax rate is $28\%.$Required:$1.$ Calculate the return on ordinary equity using the Capital Asset Pricing Model $($CAPM$).(3$ Marks$)2.$ Calculate the cost of preference equity. $(3$ Marks$)3.$ Calculate the after$-$tax cost of debt. $(3$ Marks$)4.$ Calculate the weighted average cost of capital $($WACC$)$ using the market values. $(11$ Marks$)$Round calculations off to two decimal places, where applicable.