can you please help me answer this question

QUESTION TWO [25] Tekin Lid operates in the commercial painting industry. They have reluctantly come to the conclusion that some of their older equipment a maching the end of its productive He and will need to be replaced sooner or later. They have asked for your assistance in determining theit cost of capital in order to make this decision Their present capital structure is as follows: 1 200 000 R2 ordinary shares now trading at R2,20 per share. 80 000 preference shares trading at R1,80 per share issued at R2 per share). Interest at 10%p.a. A bank loan of R1 000 000 at 10.5% pa. (payable in 3 years time) 1 Additional data a. The company's beta is 14. A retum on market of 12% is accepted and a risk free tato of 7% is applicable b. The current tax rate is 30% c. The company's current dividend is 43c per share and they expect their dividends to grow by 7p. Required: Assuming that the company uses the Capital Asset Pricing Model to calculate its cost of equity. Calculate is weighted average cost of capital (22) 22 A further RBOO 000 is needed to finance the expansion. Which option should they use (from ordinary shares, preference shares or van financing)? Provide reasons for your (3) 2