Question 3 Miss Azlin is the newly appointed Finance Manager at Suasana Berhad. Her first assignment is to report to the Board of Directors on the company's current cost of capital. She is presented with the following information: Suasana Berhad Summary of Balance Sheet inum IIIatum!. Long-term debt consists of \9 coupon bonds and a yield of maturity maturing in five years. The face value of the bond is RM1, 000. Suasana Berhad issue perpetual preferred stock at a price of RM100 a share. The stock is paying a constant annual dividend of RM8.50 a share and has a required rate of return, of 13.4 percent. Market risk-free rate is \9 and the average return on the market is \15. The company's equity beta is 1.2 . Corporate tax is \35 per annum. From the above information you are required to: a. determine the: i. cost of common stocks. (2 Marks) ii. cost of debt (2 Marks) iii. cost of preferred stocks (2 Marks) b. based on your calculation in part (a), determine Suasana Berhad's Weighted Average Cost of Capital (WACC). (4 Marks) 4 Principles of Finance (BAFBi013) CONFIOENTIAL Mer 2023 Fine' Examinetion c. What effect would inflation have on a company's cost of capital? (2.5 Marks) (Total: 12.5 Marks)