(C) Lovisa Corporation, a mid-size company jewelry and accessories has hired you to assess its capital structure. You have been able to extract the following information from their financial statement: Lovisa Corporation Statement of Comprehensive Income For the Year Ended December 31, 2021 RM 2,000,000 Sales revenue (1,200,000) Less: Cost of goods sold Gross profit (EBIT) 800,000 (200,000) Less: Interest expenses Net profit before taxes 600,000 Less: Taxes (40%) (240,000) 360,000 Net Income Additional information: i. The company has 50 million shares outstanding and the current share price is RM80 per share. ii. The company's bond is current priced at RM3.75 million with an interest on the debt is 9 percent. The bond pays semi-annual coupons and has 15 years to maturity. iii. The cost of equity is 16 percent. Based on the information above, compute the Weighted Average Cost of Capital (WACC) for both propositions. (10 marks) [25 Mark] (C) Lovisa Corporation, a mid-size company jewelry and accessories has hired you to assess its capital structure. You have been able to extract the following information from their financial statement: Lovisa Corporation Statement of Comprehensive Income For the Year Ended December 31, 2021 RM 2,000,000 Sales revenue (1,200,000) Less: Cost of goods sold Gross profit (EBIT) 800,000 (200,000) Less: Interest expenses Net profit before taxes 600,000 Less: Taxes (40%) (240,000) 360,000 Net Income Additional information: i. The company has 50 million shares outstanding and the current share price is RM80 per share. ii. The company's bond is current priced at RM3.75 million with an interest on the debt is 9 percent. The bond pays semi-annual coupons and has 15 years to maturity. iii. The cost of equity is 16 percent. Based on the information above, compute the Weighted Average Cost of Capital (WACC) for both propositions. (10 marks) [25 Mark]