1. Abond is expected to mature in10years with an RM1,000 face value. Given that the annual coupon payment is at the rate of3%, and the expected rate of return is7%. Compute the value of the bond that the New Wave willbe received.
2. Next Gen Corporation plans to issue30 million shares with a market value of RM1.00 per share, andRM20 million will be debt financing through bonds.The equity beta of the firm is 1.5. The yield on risk-free investment is 3% per year and the market risk is approximately 10% per year. The market risk premium is 7%.The par value and market value of each bond are RM1,000.The bond's annual interest payment before tax is5%.The firm pays taxation at the annual rate of 30%.

From the above information, you are required to:

1. The after-tax cost of debt.
2. The cost of the firms equity.
3. The weighted average cost of capital is based on your answers in parts (i) and (ii).

(10 marks)