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Q2. Qitar Berhad has profit before interest and tax of RM550,000. Debt to total assets ratio is currently at 30%. Cost of debt kd is

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Q2. Qitar Berhad has profit before interest and tax of RM550,000. Debt to total assets ratio is currently at 30%. Cost of debt kd is 12%. The company reports total assets of RM4,240,000. Market for Qitar's product is stable and the company expects no growth. Qitar maintains 100% payout. There are 150,000 shares outstanding. It is estimated that the current required return on equity is 16%. The corporate tax rate is 40%. Required: (a) Calculate the company's net income, earnings per share (EPS) and dividend per share (DPS). (6 marks) (b) Evaluate the company's weighted average cost of capital. (3 marks) Calculate the current share price of the stock. (2 marks)

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