Fasih Bhd is engaged in home improvement product has been listed at Bursa Malaysia with the largest initial public offer in the year 2020. Fasih Bhd is committed to expand its business across Malaysia and Brunei with a tagline Always Low Price and plans to have 700 stores in both countries in the year 2021. Currently, Fasih Bhd is entirely financed by equity with a 50 million unit of shares. The market value traded at price of RM1.60 per share. The firm expects earnings before interest and tax (EBIT) to be RM15 million per year in perpetuity. The corporate tax rate is 24%.

In the year 2021, Fasih Bhd plans to finance 35% of its new project partially with debt financing. The cost of the new project worth RM50 million. The firm may issue bonds at 10% pre-tax cost of debt per annum. If this proposal is accepted, calculate:

i. The value of firm.

ii. The cost of equity (Rs) iii. The weighted average cost of capital (Rwacc)