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Question 2 (616) The following are the financial information of Ipoh Corporation, a publicly traded company. Debt: RM210,000 ten percent semiannual bonds outstanding. Par value

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Question 2 (616) The following are the financial information of Ipoh Corporation, a publicly traded company. Debt: RM210,000 ten percent semiannual bonds outstanding. Par value RM1,000 each. The bonds have 17 years to maturity and sell for 91 percent of par Common Stock 14 million shares outstanding. The stock currently sells for RM34 per share and has a beta of 1.15 Preferred Stock: 900,000 shares outstanding and, it currently sells for RM80 per share. Dividend paid is RM9 per share Market The market risk premium is 11.5 percent, and Malaysia T-bills are yielding 7.5 percent Assume the company's tax rate is 32 percent Required: a) Calculate the company's market value capital structure. b) Calculate the weighted Average Cost of Capital of the company. Give your suggestion to the company

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