Assume the following information for Sayang Co., a Malaysia based MNC that needs funding for a project in Germany:

Msia risk-free rate = 3.5%

German risk-free rate = 4.5%

Ringgit denominated debt provided by Msia creditors = 6.5%

Euro-denominated debt provided by German creditors = 8%

Beta of project = 1.3

Expected Msia market return = 10%

Msia corporate tax rate = 30%

German corporate tax rate = 40%

Proportion of debt = 45%

Sayang Co. has decided to go for debt in Germany and equity in Msia

a) What is Sayang's after-tax cost of euro-denominated debt?(4 marks)

b) What is Sayang's cost of ringgit-denominated equity?(6 marks)