Question 3.5 Analyzee pic is a multi-national company that manufactures software for analysing quantitative research data. The company is currently paying 30 per cent tax on profit. The company has recently issued two million 10% RM1.50 redeemable preferred shares with a market value of RM2.00 per share, which will be redeemed in 20 years' time at nominal. A flotation cost of 10 per cent was incurred on issue of new preference shares. In addition, Analyzee pic has in issue two million ordinary shares with a market value of RM4.80 per share. The equity beta of the company is 1.1. The yield on short-term govemment debt is 4.5% per year and the equity premium is approximately 7% per year. Analyzee ple is also financed by 7% bonds with a par value of RM100 per bond. The bonds which all will be redeemed in eight years' time have a total nominal value of RM14 million. The current market value of each bond is RM105. Required: a Calculate the after-tax weighted average cost of capital of Analyzee plc. (12 marks)