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QUESTION 2: B-Rich Enterprise is a manufacturing company that currently has a perpetual expected earnings before interest and taxes (EBIT) of RM1,500,000. The company's debt

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QUESTION 2: B-Rich Enterprise is a manufacturing company that currently has a perpetual expected earnings before interest and taxes (EBIT) of RM1,500,000. The company's debt to equity ratio is 0.35. The overall cost of capital (Ru) and the cost of debt of the company are 18% and 8% respectively. Assume there is no corporate taxes. Calculate: a. The market value of debt (D). marks) b. The market value of equity (E)

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