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 R$4$ per share. The latest dividend declared was $93$ cents per share. A dividend growth of $14\%$ was maintained for the past $5$ years.

$100000012\%,$ R$1$ Preference shares with a market value of R$3$ per share.

$$R$130000010\%$ Bank loan, due in December $2034.$

Additional information:

$1.$ The company is taxed at $30\%.$

$2.$ The beta of the company is $1\mathrm{.}5,$ a risk free rate of $5\%$ and the return on the market is $16\%.$

Required:

$1\mathrm{.}1$ Calculate the weighted average cost of capital $($WACC$).$ Use the Gordon Growth Model to calculate the cost of equity.

$1\mathrm{.}2$ Calculate the cost of equity using the Capital Asset pricing Model $($CAPM$)$