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financeSWC Co . has the following capital structure: The common shares of SWC Co are currently selling at RM 3 . 5 0 per share,

financeSWC Co. has the following capital structure:
The common shares of SWC Co are currently selling at RM3.50 per share, with dividends
anticipated to grow by 3% annually in future, and an RM0.50 dividend payment was made
recently.
The 6% preference shares are irredeemable and have a market value of RM2.50 per share.
SWC Co's 7% loan notes are currently selling at RM105.45 per loan note and will be redeemed
at RM100 per loan note in 5 years. The annual yield until maturity is 5%. SWC Co is subject
to corporate taxation at rate of 30%. You are required to calculate:
a) Market value of equity
b) Market value of preference shares
c) Market value of loan notes
d) Total market value
e) Cost of equity
f) Cost of debt and cost of preference share
g) Weighted Average Cost of Capital (WACC)
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