a) Gemilang Bhd. is a new company and have capital components valued at book and market and market component costs as follows. Component Debt Market Value RM40,000 Preferred Stock RM20,000 Common Equity RM40,000 Book Value Market Cost RM30,000 8% RM15,000 10% RM55,000 15% No new securities have been issued since the firm was originally capitalized. Calculate the firm's capital structures and WACCS based on both book and market values. a) Little Rock's stock is selling for RM80. Its last dividend was RM8.50, and the firm is expected to grow at 10% indefinitely. Flotation costs associated with the sale of common stock are 12% of the proceeds raised. Estimate Little Rock's cost of equity from retained earnings and from the sale of new stock.