GB Timbers, based in Germany, supplies timber products to construction and manufacturing industries. The company reported after-tax earnings available to common stocks of RM3,200,000. From these eamings, the management decided to pay a dividend of RM0.80 on each of its 4,000,000 common shares outstanding. The capital structure of the company includes 30% debt, 40% common stock, and 30% preferred stock. The tax rate applicable to GB Timbers is 30%. 1) Sekiranya harga pasaran saham biasa adalah RM3.60, dan dividen dijangka berkembang pada kadar 8% setahun untuk masa hadapan, apakah kadar pulangan yang diperlukan pada saham biasa syarikat? If the market price of the common stock is RM3.60, and dividend is expected to grow at a rate of 8% per year for the foreseeable future, what is the required rate of return on the company's common stock? (2 markah/marks) Syarikat boleh mengeluarkan stok saham dividen RM1.00 untuk harga pasaran RM10.00 sesaham. Kos pengapungan akan berjumlah RM0.60 sesaham. Apakah kos pembiayaan saham keutamaan? The company can issue a RM1.00 dividend preferred stock for a market price of RM10.00 per share. The floatation costs would amount to RM0.60 per share. What is the cost of preferred stock financing? (2 markah/marks) Di samping itu, syarikat itu boleh mengeluarkan bon dengan nilai muka RM100, kupon 8%, bon 10 tahun yang boleh dijual dengan harga RM110 setiap satu. Kos pengapungan akan berjumlah RM2 bagi setiap bon. Gunakan formula anggaran untuk menentukan anggaran kos pembiayaan hutang. in addition, the company can issue RM100 per value, 8% coupon, 10 year bonds that can be sold for RM110 each. Floatation costs would amount to RM2 per bond. Use the estimation formula to figure the approximate cost of debt financing (2 markah/marks) GB Timbers, based in Germany, supplies timber products to construction and manufacturing industries. The company reported after-tax earnings available to common stocks of RM3,200,000. From these earnings, the management decided to pay a dividend of RMO.80 on each of its 4,000,000 common shares outstanding. The capital structure of the company includes 30% debt, 40% common stock, and 30% preferred stock. The tax rate applicable to GB Timbers is 30%. i) If the market price of the common stock is RM3.60, and dividend is expected to grow at a rate of 8% per year for the foreseeable future, what is the required rate of return on the company's common stock? The company can issue a RM1.00 dividend preferred stock for a market price of RM10.00 per share. The floatation costs would amount to RM0.60 per share. What is the cost of preferred stock financing? iii) In addition, the company can issue RM100 per value, 8% coupon, 10 year bonds that can be sold for RM110 each. Floatation costs would amount to RM2 per bond. Use the estimation formula to figure the approximate cost of debt financing