Question 4 Miss Fazilla is the newly appointed Finance Manager at Sup Bunjut Sdn Bhd. 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: Sup Bunjut Sdn Bhd Summary of Balance Sheet RM For Year Ended 2022 RM Current Assets 50,000 Long term debt 10,000 Inventories 20,000 Bond 20,000 Machine & equipment 10,000 Preferred stocks 10,000 Common stocks 40,000 80,000 Total Liabilities and Equities 80,000 Total Asset Information: Long-term debt consists of 9% coupon bonds and a yield of maturity is 12%, maturing in five years. The face value of the bond is RM1,000. Sup Bunjut Sdn Bhd 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% 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 answer the following questions: a. Determine the: i. cost of common stocks. ii. cost of debt iii. cost of preferred stocks (5 Marks) (5 Marks) (5 Marks) b. Based on your calculation in part (a), determine Suasana Berhad's Weighted Average Cost of Capital (WACC). (8 Marks) c. Sup Bunjut Sdn Bhd is considering a project called Project BulanBintang that has a rate of return of 10%. Should it take on this project? Explain your answer. (2 Marks)