Global Bhd. is considering a few projects for its investment. Investment costs and expected rate of return for these projects are as follows: Project Investment cost (RM) Expected rate of return (%) 900,000 15 457,000 11 3 500,000 7.5 780,000 1 2 16 Capital structure for Global Bhd. is as follows: Balance Sheet for Global Bhd. Dunes e Financing Weight Bond (8%, par value of RM 1,000, maturity period of 10 years) 45% Preferred stock (4000 stocks, par value of RM40, dividend RM1.20) 10% Common stock Total 100% Floatation cost for bond is 10% of the market price, RM0.90 per share for issuing new common stocks and RM1.50 per share for preferred stocks. Last year, the company has paid the dividend of RM2.50 per share and expected to grow at 6% per annum forever. The market price is RM1,050 for bond, RM15 for preferred stock and RM20 for common stock. The existing retained carnings is equivalent to RM825,000. Tax rate is 34% Based on the information given, calculate: a. The firm's before-tax cost of debt (3.5 marks) b. The firm's after-tax cost of debt (1 mark) c. The firm's cost of a preferred stock (2 marks) d. The firm's cost of retained earnings (2 marks) Weight Types of Financing Bond (8%, par value of RM1,000, maturity period of 10 years) Preferred stock (4000 stocks, par value of RM40, dividend RM1.20) Common stock Total 45% 10% 45% 100% Floatation cost for bond is 10% of the market price, RM0.90 per share for issuing new common stocks and RM1.50 per share for preferred stocks. Last year, the company has paid the dividend of RM2.50 per share and expected to grow at 6% per annum forever. The market price is RM1,050 for bond, RM15 for preferred stock and RM20 for common stock. The existing retained earnings is equivalent to RM825,000. Tax rate is 34%. Based on the information given, calculate: a. The firm's before-tax cost of debt (3.5 marks) b. The firm's after-tax cost of debt (1 mark) c. The firm's cost of a preferred stock (2 marks) d. The firm's cost of retained earnings (2 marks)