You have been appointed as a financial consultant by the directors of Goa Ltd. They require you to calculate the cost of capital of the company. The following information is available on the capital structure of the company: 1000000 Ordinary shares, with a market price of R4 per share. The latest dividend declared was 93 cents per share. A dividend growth of 14% was maintained for the past 5 years. 100000012%, R1 Preference shares with a market value of R3 per share. R1 30000010% Bank loan, due in December 2034. Additional information: 1. The company is taxed at 30%. 2. The beta of the company is 1.5 , a risk free rate of 5% and the retum on the market is 16%. REQUIRED: 1.1 Calculate the weighted average cost of capital (WACC). Use the Gordon Growth Model to calculate the cost of equity. (22 marks) 1.2 Calculate the cost of equity using the Capital Asset pricing Model (CAPM)