Maya Legacy has a perpetual bond issue that pays a coupon rate of 10% per annum. The bond's par value is RM500 and the market price is RM100. The tax rate is 25%. Maya Legacy also issuing preferred...

hi there tutors! im here to cure my doubts.

i hv a few subs to ask. please help solve.

fundamentals of finance

Required:

state formula for each then calculate:

• Cost of preferred stock


• Cost of debt


• Cost of debt after taxes


• Weighted-Average Cost of Capital

thats all, tutor, i hope for a correct & precise calculations. thank you!

Extracted text: Maya Legacy has a perpetual bond issue that pays a coupon rate of 10% per annum. The bond's par value is RM500 and the market price is RM100. The tax rate is 25%. Maya Legacy also issuing preferred stocks at RM250 per share with a stated dividend of RM25, and a floatation cost of 3 %. Overall Maya Legacy maintains 70% of preferred stock and the rest was debt.