Debt: Pharma Berhad's bond with a coupon rate of $8\%$ is currently selling at par value.

Preferred Stock: The company has $2$ million $14\%$ Preferred stocks at a par value RM$1\mathrm{.}00.$

The stock current price is RM$1\mathrm{.}25.$

Common Stock: Pharma Berhad's common stock is currently selling for RM$18$ per share.

The dividend expected to be paid next year is RM$1\mathrm{.}74.$ The floatation cost for new common

stock will amount to RM$2$ per share. The dividend is expected to grow at a $6$ percent rate

into the future.

The marginal corporate tax rate is $28\%.$

Required:

a$.$ Calculate the after$-$tax cost of debt for Pharma Berhad.

b$.$ Calculate the cost of preferred stock for Pharma Berhad.

c$.$ Calculate the cost of retained earnings for the company.

d$.$ Calculate the cost of new common stock for the company.

e$.$ Compute the after$-$tax weighted average cost of capital, assuming there is not new issue

of common stock.