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Question 5 Slowia Steady Berhad has pre-tax cost of debt is 7%. Its tax rate is 40%. From the above information; a. Calculate Slow'n Steady

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Question 5 Slowia Steady Berhad has pre-tax cost of debt is 7%. Its tax rate is 40%. From the above information; a. Calculate Slow'n Steady after-tax cost of debt? b. Slow'n Steady also has preferred shares trading at RM50 per share. The preferred dividend of RM4 is due in one year. What is Slown Steady's cost of capital for its preferred shares? c. Slow'n Steady also has a common shares price of RM30. The company will pay a dividend next year of RM3 and has an expected dividend growth of 1% per year. What is your estimate of Slow'n Steady's cost of equity? d. Given the information that Slowin Steady has RM6 million common shares outstanding and RM4 million preferred shares outstanding, and its liabilities is RM20 million, using your answers in parts (a to c) what is Slewin Steady weighted cost of capital (WACC)

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