(a) Following are the sources of long term financing for LBS Bina Group Berhad.

Bonds with RM1,000 par value, maturity 6 years, which pay 8 percent coupon interest per annum and currently selling at RM937.

Preferred shares that pay RM1.50 dividend with flotation cost RM0.50 per share. The share currently sells at RM20 per share.

Common shares that sell at RM35 per share, pay RM2 dividend per share and the dividend are expectedly to grow 3 percent per year indefinitely.

i. Based on the above information, compute the cost of capital for each sources of financing, given the corporate tax is 28 percent.

ii. If the companys capital structure is 30 percent on bond, 40 percent on preferred shares and 30 percent on common shares, compute Weighted Average Cost of Capital (WACC) of the company.

(b) Ekowood International Berhad is planning for next years production.Therefore, Mr Roslan, the financial manager is evaluating cash management of the company. Ekowood had an annual sale of RM5,000,000 and it cost of goods sold is RM600,000. Given the average inventory is RM200,000, average account receivable is RM350,000 and average account payable is RM 150,000, compute the Cash Conversion Cycle (CCC) of Ekowood and explain the finding.