You are given the following information regarding Green Packaging Solutions $($Pty$)$ Ltd$\text{'}$s funding structure:

$7500$ bonds issued with a nominal value of R$1500$ each and time to maturity of $15$ years. It pays an annual

coupon rate of $11\%$ per annum and the current market return on similar bonds with a maturity date of $15$ years is

$12\%$ per annum $($pre$-$tax$).500000$ ordinary shares are in issue with a nominal value of R$45$ per share. The next

dividend payable will be R$9$ per share. It is expected that dividends will have a long$-$term sustainable growth rate

of $5\%.$ The shares have a current market value of R$80$ per share.

The corporate tax rate is $28\%$

Determine the cost of equity of Green Packaging Solutions $($Pty$)$ Ltd$?$ Set your calculator to four decimal places and

round the final answer to two decimal places. If slight rounding differences occur $-$ choose the alternative that is

closest to your answer.

$($a$)11,00\%$

$($b$)11,42\%$

$($c$)16,25\%$

$($d$)17,00\%$