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Cost of Debt and Debt Financing in Malaysia a ) Calculate the cost of debt for MAXIS AND HARTALEGE company. Discuss the factors that affect
Cost of Debt and Debt Financing in Malaysia
a Calculate the cost of debt for MAXIS AND HARTALEGE company. Discuss the factors that affect the cost of debt, including the yield to maturity YTM on their outstanding bonds.
b
Cost of Equity and Equity Financing in Malaysia
c Determine the cost of equity for each of the selected companies using the Dividend Discount Model DDM or the Capital Asset Pricing Model CAPM Justify your choice of model.
d Discuss the risk factors that influence the cost of equity to the selected companies.
e Compare and contrast the cost of equity for the two companies and explain any variations.
Weighted Average Cost of Capital WACC in the Malaysian Market
f Calculate the Weighted Average Cost of Capital WACC for each of the selected companies by combining the cost of debt and cost of equity. Explain the importance of the WACC in investment decisions.
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