Aisya selamat soln is trying to calculate its cost of capital for use in a capital budgeting decision Mr. Hadri, the manager of finance, has given you the following information and has asked you to compute the weighted average cost of capital knowing that you have just graduated with an MBA degree from UITM. The company currently has bond with 11.2 percent coupon rate and bond with 7.5 percent rate. The firm has been informed by as investment banker that bands of equal risk and credit ratings are now selling to yield 12.4 percent. The common stock has a price of RM54 and an expected dividend of RM2.70 per share. The firm's historical growth rate of earnings and dividends per share has been 45 percent, but security analysts at Kuala Lumpur expect this growth to slow to 12 percent in future years. The preferred stock is selling at RM50 per share and carries a dividend of RM4.75 per share. The corporate tax rate is 25 percent. The floatation cost is 2.8 percent of the selling price for preferred stock. The capital structure is 35 percent debt, 10 percent preferred stock and 55 percent common equity, i) Compute the cost of capital for the individual components in the capital structure ii) Calculate the weighted average cost of capital for the firm