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FR Berhad has 6.5 million shares of common stock outstanding with a market price of RM14 per share. This company has a market value
FR Berhad has 6.5 million shares of common stock outstanding with a market price of RM14 per share. This company has a market value of RM10mil outstanding preferred stock. Their corporate bonds outstanding is 25,000 with face value of RM1000 and selling at 90% of face value on the bond market. The cost of equity is 14%, the cost of preferred is 10% and the pre-tax cost of debt is 7.5%. Their marginal corporate tax rate is 30%. (1) Calculate the market value for common stock preferred stock, corporate bond and firm. ii) Calculate the firm's Weightage Average Cost of Capital (WACC) Mira a CFO of a multinational firm from Europe is considering to lease a building in Bayan Lepas free trade zone. As finance manager advise CFO on the types of leases available in Malaysia.
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