[25 marks] QUESTION 2 Part A Z Bhd is identical in all operating and risk characteristics to D Bhd, except that Z Bhd is financed only by equity valued at RM3millions whereas D Bhd has debt valued at RM0.9 million (based on market value) as part of its capital structure. Z and D are both operating in a country where tax is payable at 33%. The interest paid on D Bhd's debt is RM72,000 per annum, and it pays a dividend to shareholders of RM378,000 per annum. Z Bhd pays an annual dividend of RM450,000. Required: a. Calculate the value of equity of D Bhd. b. Calculate the cost of capital for Z Bhd (assuming no growth in dividends) c. Calculate the cost of equity for D Bhd, and the cost of debt for D Bhd. d. Calculate the weighted average cost of capital for D Bhd. (2 marks) (1 mark) (2 marks) (2 marks)