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Fleet Berhads capital structures details: Bonds: The company issued a 25-year bond, 15 years ago, with a semiannual coupon of 8%. The current interest rate

Fleet Berhads capital structures details: Bonds: The company issued a 25-year bond, 15 years ago, with a semiannual coupon of 8%. The current interest rate is 7.31%. Preferred stocks: The dividend rate is 8% on a par value of RM100, and the interest rate is 9.15%. Common stocks: The latest dividend paid was RM0.14 per share, growth rate is 5%, and the current interest rate is 9.14%. New Bonds: The company plans to issue new callable bonds with a floatation cost of 2%, an annual coupon of 8% for the term of 25 years. The bonds callable value is RM1,350 per unit, and will be sold today for RM875 per unit. Required: a) Calculate the price of the bond today. (3 marks) b) Calculate the price of the preferred stock. (2 marks) c) Calculate the price of the common stock. (2 marks) d) Calculate the cost of capital of the new bonds

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