COMPANY ABC IS PRODUCING POULTRY PRODUCT. CURRENT CAPITAL STRUCTURE OF THE COMPANY IS RM12MIL DEBT, RM5MIL PREFERRED STOCK AND RM25MIL COMMON STOCK. BELOW IS THE INFORMATION 1. Cost of debt before...

COMPANY ABC IS PRODUCING POULTRY PRODUCT. CURRENT CAPITAL STRUCTURE OF THE COMPANY IS RM12MIL DEBT, RM5MIL PREFERRED STOCK AND RM25MIL COMMON STOCK. BELOW IS THE INFORMATION 1. Cost of debt before corporate tax is 9 percent. 2. the dividend of preferred stock is RM2 with a market price of RM10 3. It is expected the dividend of common stock will grow at 5 percent constantly with current dividend at RM0.50 (D0) and the market price of RM25 per share. Based on the information, calculate the cost of debt, the cost of preferred stock, the cost of common stocks and the Weighted Average Cost of Capital (WACC) with the assumption of Corporate tax is 40 percent