Kunta Bhd is going to issue new bonds and equity to raise funds needed for their latest projects amounting to RM1,500,000. The total amount of companys debt and equity as 30 June 2021 is RM15 million. The par value and market value of the 8% bond is RM1,000 and RM920, respectively. The flotation cost to issue additional bond is 4% of the market value. After the maturity period of 5 years, the bond can be redeemed at RM1,040. The existing value of 8% Bond as 30 June 2021 is amounting to RM4,500,000. Kunta Bhd plans to issue 7% preference shares with a par value of RM100 can be sold at 2% discount and additional fee of 3% of the par value. Until to date 30 June 2021, 15,000 units of preference shares has been issued at par value.

On 30 June 2021, the outstanding number of ordinary shares is 7,800,000 units valued at par RM1.00. The shares are currently traded at the stock market at price of RM2.00 per share. The flotation cost to issue new common stock is 10% of the market price. Kunta Bhd has paid dividend per share at a constant growth rate for the three consecutive years from the year 2019 (RM0.1300), year 2020 (RM0.1365) and year 2021 (RM0.1433). For next year 2022, the firm proposes to continue paying dividend per share at similar growth rate from the previous years dividend. Kunta Bhd has reported retained earnings as of 30 June 2021 amounting to RM1,200,000. The firm decides to use 80% of its retained earnings for re-investment purposes. The corporate tax rate is 24%.

Calculate the individual after-tax cost of:

i. new debt

ii. preference shares

iii. retained earnings

iv. new common stocks