Maju Berhad plans to raise RM 27 million to upgrade its production plant. The project is expected to increase the companys yearly after tax cash flows by RM 5 million perpetually. The company plans to issue the following sources of long-term financing and maintain the same weightage in the capital structure below:

Sources RM

Debt 500,000

Preferred 300,000

Common stock 1,200,000

i) A 20 year bond at 5% above the par value , an cost 8% coupon rate and flotation costs at 5% of the market price.

ii) Preferred stock with an issue price of 105% of par value per share , a dividend rate of 5.5% and flotation cost at 6% of the issue price.

iii) Common stock at selling price of RM 5 per share and flotation cost of 2.5% of the selling price . The company paid a RM 0.50 dividend per share last year and the dividend is expected to grow at a 6% annual rate .

Corporate tax is 28%. Calculate:

i) Cost of each sources of financing

ii) WACC and WAFC

iii) Net present value of the proposed project before considering flotation cost

iv) Net present value of the proposed project after considering flotation cost

notes : hi, can anyone help me to solve this question? i dont know how to do it. The answer steps must also based on using financial calculator. Thank you in advance.