Busana Cantik is a clothing store in Penang. It paid an annual dividend of

RM$2\mathrm{.}50$ last year to its shareholders and plans to increase the dividend

annually at $2\%.$ It has $500,000$ shares outstanding. The shares currently sell

for RM$21\mathrm{.}25$ per share. Busana Cantik has $10,000$ semiannual bonds

outstanding with a coupon rate of $7\mathrm{.}5\%,$ a maturity of $16$ years, and a par

value of RM$1,000.$ The bonds are currently selling for RM$874\mathrm{.}08$ per bond

What is the Weighted Average Cost of Capital $($WACC$)$ for Busana Cantik if

the corporate tax rate is $35\%?$

$[6$ marks$]$