Cattlea Berhad involves making plastic flowers and is in this situation. The company expects no growth, all earnings are paid out as dividends. The debt consists of perpetual bonds, Required: a) What are Cattlea's eamings per share (EPS) and its price per share (P0) ? (6 Marks) b) What is Cattlea's weighted average cost of capital (WACC)? (4 Marks) c) Cattlea can increase its debt by RM5.0 million, to a total of RM7.0 million, using the new debt to buyback and retire some of the shares at current price. Its interest rate on new debt will be 10% (it will have to call and refund the old debt), and its costs of new equity will rise from 12% to 14%. EBIT will remain constant. Should Cattlea change its capital structure? (10 Marks)