a. A bond is expected to mature in 10 years with a RM1,000 face value. Given that the annual coupon payment is at the rate of 3%, and the expected rate of return is 7%. Compute the value of the bond that New Wave will be received. (2 Marks) b. New Wave plans to issue 30 million shares with a market value of RM1.00 per share, and RM20 million will be a debt financing through bonds. The equity beta of firm is 1.5. The yield on risk free investment is 3% per year and the market risk is approximately at 10% per year. The market risk premium is 7%. The par value and market value of each bond is RM1,000. The bond annual interest payment before tax is 5%. The firm pays taxation at the annual rate 30%. From the above information, you are required to: i. The after -tax cost of debt. (2 Marks) ii. The cost of firms equity. (2 Marks) iii. The weighted average cost of capital based on your answers in part (i) and (ii). (4 Marks)