5. Inspirasi Bhd is planning to invest in a new project costing RM5 million. The capital structure of the company as at 31 December 2018 is as follows: Percentage (%) 5% Bond 25.00 6% Preference shares 17.50 Ordinary share capital 37.50 Share premium 6.25 Retained earnings 13.75 Total 100.00 Inspirasi Bhd proposes a mixture of debt and equity financing such as bond, preferred and common stock to finance the project. The company plans to issue 5% bond with a nominal value of RM1,000 at net issued price of RM1,150. Inspire Bhd will redeem the 5% bond after 10 years at nominal value. The issuance cost of RM50 per unit of bond will be incurred. The 6% preferred stock with a nominal value of RM100 can be issued at RM120. The issuing price includes 10% flotation cost per share The ordinary shares are currently selling at RM3.50 per share. A flotation cost of 6% of the market price will be incurred for the issuance of new shares. The dividend paid was RM0.05 sen and it is expected to grow at 7% per annum. The company has allocated RM4.5 million of the retained earnings for re-investment purposes. Note: The corporate tax rate is 25%. Required: a. Calculate the cost of: 1. 5% Bond (after tax) ii. 6% Preference shares II. Internal equity IV. External equity (8 marks)