Write My Paper Button

For faster services, inquiry about  new assignments submission or  follow ups on your assignments please text us/call us on +1 (251) 265-5102

    Write My Paper Button

BAFB1013 Miss Ain is the newly appointed Finance Manager for KebunBunga Berhad: Principles Of Finance Assignment, UIU, Malaysia

Miss Ain is the newly appointed Finance Manager for KebunBunga Berhad. Her first assignment is to report to the Board of Directors on the company’s current cost of capital. She is presented with the following information:

KebunBunga Berhad Summary of Financial Position For Year Ended 2022

Long-term debt consists of 10% coupon bonds maturing in five years. The face value of the bond is RM1 000 and the yield to maturity is 12%.

KebunBunga Berhad issue perpetual preferred stock at a price of RM47.50 a share. The stock is paying a constant annual dividend of RM3.80 a share.

The market risk-free rate is 6% and the average return on the market is 15%. The company’s equity beta is 1.2.

Are You Searching Answer of this Question? Request Malaysian Writers to Write a plagiarism Free Copy for You.

Hire an Expert

Corporate tax is 40% per annum.

From the above information you are required to:
a. determine the:
i. cost of common stocks.
ii. cost of debt.
iii. cost of preferred stocks.

b. based on your calculation in part (a), determine KebunBunga Berhad’s Weighted Average Cost of Capital (WACC).

c. Explain what effect inflation would have on a company’s cost of capital.

Get Solution of this Assessment. Hire Experts to solve this assignment for you Before Deadline.

Hire an Expert

The post BAFB1013 Miss Ain is the newly appointed Finance Manager for KebunBunga Berhad: Principles Of Finance Assignment, UIU, Malaysia appeared first on Malaysia Assignment Help.

WhatsApp
Hello! Need help with your assignments?

GET FREE ASSIGNMENT HELP

X
Loading...