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Solve the following questions: : a) Qaseh Media Bhd is issuing new ordinary shares at...

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Solve the following questions: : a) Qaseh Media Bhd is issuing new ordinary shares at a market price of RM32 each. Last year they paid dividends of RM1.20 per share. Analyst expect the dividends to grow at annual rate of 6 percent forever. What is Qaseh Media 's cost of common equity capital? b) Cekap Engineering Bhd plans to construct a new state-of-the-art facility for its products. It has issued bonds to fund the project at a face value of RM800 that pay 10 percent coupon rate annually. These bonds have a 10-year maturity period. The bonds were issued at a market value of RM760. Cekap has a corporate tax rate of 40 percent. What is the after-tax cost of debt for Cekap? c) Teraju Bhd is issuing preference shares for RM40 each. These preference shares pay an annual dividend of 8 percent on a face value of RM50. What is the cost of capital for Teraju for these preference shares? d) Smart Corporation is contemplating a new investment that it plans to finance using one- third debt. The firm can sell new RM1,000 par value bonds with a 15 year maturity and a coupon interest rate of 13 percent (with interest paid semiannually) at a price of RM950. If the company is in a 34 percent tax bracket, what is after-tax cost of capital for the bonds

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