QUESTION 4 (10 MARKS) a. Trico bonds have a coupon rate of 8%, a par value of RM1,000 and will mature in 20 years. If you require a return of 7%, what price would you be willing to pay for the bond? (Bon Trico mempunyai kadar kupon 8%, nilai par RM1,000 dan akan matang dalam masa 20 tahun. Jika anda inginkan pulangan 7%, pada harga berapakah anda sanggup membayar untuk bon tersebut?) (4 marks/markah) b. The common stock of Zaidi Co. is selling for RM32.84. The stock recently paid dividends of RM2.94 per share and has a projected constant growth rate 9.5%. If you purchase the stock at a market price, what is your expected rate of return? (Saham biasa Zaidi Co. dijual pada harga RM32.84. Baru-baru ini, dividen bagi saham tersebut adalah RM2.94 sesaham dan kadar pertumbuhan berterusan yang diunjurkan adalah 9.5%. Jika anda membeli saham pada harga pasaran, berapakah jangkaan kadar pulangan anda?) (3 marks/markah) c. Lucy Motors has a target capital structure of 40% debt and 60% common equity, The yield to maturity on the company's outstanding bond is 9%, and its tax rate is 40%. Lucy's CFO estimates that the company's WACC is 9.96%. What is Lucy's cost of common equity? (Lucy Motors mensasarkan struktur modal yang terdiri dari 40% hutang dan 60% ekuiti biasa. Hasil hingga matang untuk bon syarikat ialah 9% dan kadar faedahnya 40% CFO Lucy menganggarkan WACC adalah 9.96%. Apakah kos bagi equity biasa Lucy?). (3 marks/markah)