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1) ABC company has given out dividend payment of RM23,000 and it dividend growth rate is expected to increase by 8 percent per year. The
1) ABC company has given out dividend payment of RM23,000 and it dividend growth rate is expected to increase by 8 percent per year. The current share price is RM30 and there are currently 30,000 share outstanding.
What is the current cost of equity of share now ?
2) XYZ has bonds that has 10 more years to mature. Its current yield is at 8 percent and its price currently is at RM90. Given its tax rate of 40 percent,
what is its pretax cost of debt?
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