GWQ Ltd has an equity beta $1\mathrm{.}6.$ The market risk is premium in South Africa is expected to be $6\%$ and the yield on government bond $($risk free rate$)$ is currently $8\mathrm{.}5\%.$ GWQ Ltd has issued bonds and its par value bond is currently trading at R$94\mathrm{.}50.$ The coupon rate is $10\%.$ The maturity date is in $5$ years time and the corporate tax rate is $30\%.$ Interest payable is annully in arrears.

Required. What is GWQ$\text{'}$s after tax cost of debt?

What is GWQ$\text{'}$s weighted average cost of capital if the target debt to equity ratio is $50\%$ and the cost of equity and cost of debt are $15\%$ and $9\%$ respectively? What is GWQ$\text{'}$s cost of equity based on CAPM?