4. Raja Builders Ltd. uses only debt and equity. Raja is issuing Tk. 5,000 value's bond at a market price of Tk. 4,920 with 11.5% coupon interest rate, mature in 5 years. Next paid dividend is expected to be Tk. 3 which will follow a constant growth rate of 4 %. Common stocks are currently traded at Tk. 90. The flotation cost for issuing new stock is 5% of the par value of Tk.50. Raja Corporation has a marginal tax rate of 30%. Currently they have outstanding bond of Tk. 5,000,000 and total no of common shares outstanding of 1,000,000. Required: Using the issuance of new stock cost, calculate the WACC for Raja Corporation. b) Sonia Architect Ltd. uses debt, preferred stock and equity. The cost of debt for Sonia is 8.5%. They plan to issue some of Tk. 100 par preferred stock with a 11 % dividend. The preferred stock is selling on the market for Tk. 90 and they must pay a flotation cost of 5% par value of each preferred stock. The risk-free rate of return is 5%, market rate of return for common stock is 13 % and Beta of firm's stock is 1.15. The marginal tax rate is 30%. Currently they have outstanding debt of Tk. 2,000,000 and total no of preferred shares outstanding of 500,000 and common stock of Tk. 1,000,000. Required: Calculate the WACC for Sonia Corporation. (5+5=10) on the