You have been appointed as a financial consultant cost of capital of the company, (25 Marks) the directors of ABC Limited. They require you to calculate the The following information is available available on the capital structure of the company 1 500 000 Ordinary shares, with a market price and the return on the market is 15%. price of R3 per share. The beta of the company is 1.8, a risk-free rate of 1 000 000 12%, R1 Preference share with a market value of R2 por share. O 000 9%, Debentures due in 7 years and the current yo and the current yold-to-maturity is 10% R900 000 14% Bank loan, due in December 2020 Additional information: The company has a tax rate of 30% The latest dividend declared was the past 5 years dividend declared was 90 cents per share. A dividend growth of 13% was maintained for Required: Calculate the weighted average cost of capital (WACC). Use the Capital Asset Pricing Model to calculate the (22 marks) cost of equity Calculate the cost of equity, using the Gordon Growth Model (3 marks) (25 Marks