CHAPTER 10: CAPITAL STRUCTURE (25 MARKS) SUBMISSION DUE DATE: 6n SEPTEMBER 2022 QUESTION 1: Bahagia Berhad currently use 100% of equity as the source of funds and has RM250,000 of earning before interest and taxes (EBIT). The unlevered cost of capital is 12% and the corporate taxes rate is 26%. a. Calculate the current value of the firm. b. If the company borrows RM250,000, calculate the new value of the firm. (4 marks) c. If the borrowed amount is charged at 6%, compute the cost of equity (R.). (7 marks) d. Compute the weighted average cost of capital (WACC). (5 marks) QUESTION 2: B-Rich Enterprise is a manufacturing company that currently has a perpetual expected earnings before interest and taxes (EBIT) of RM1,500,000. The company's debt to equity ratio is 0.35. The overall cost of capital (Ru) and the cost of debt of the company are 18% and 8% respectively. Assume there is no corporate taxes. Calculate: a. The market value of debt (D). marks) b. The market value of equity (E)