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8. Earnings and interest payments for the following firm are constant in perpetuity. All prices are ex-dividend or ex-interest with payments made annually. The firm

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8. Earnings and interest payments for the following firm are constant in perpetuity. All prices are ex-dividend or ex-interest with payments made annually. The firm has 100 million shares issued and fully paid at a nominal value of RM0.25 and a market price of RM1.20. The dividends per share are RM0.24. The issued debt consists of RM160million (nominal value) of irredeemable loans with a coupon rate of 6%. The debt is currently traded at RM50 per RM100 nominal. The rate of corporation tax is 28%. What is the firm's post-tax weighted average cost of capital? B D 10.18% 12.00% 13.73% 15.46%

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