Question 6 World Bhd plans to invest in a new project next year. The project will cost the company RM10 million. Currently, the company has RM40 million in total assets and RM1 million retained earnings available for reinvestment purposes. The firm's 2020 capital structure is as follows: RM 8% debentures (RM100 each) 4 million Ordinary shares 4 million Retained earnings 2 million 10 million Next year, the company expects the debentures to be traded at RM90 each. The firm's ordinary shares are currently selling at RM2 each after flotation cost of RM0.20 per share. The company's earnings per share (EPS) for the year 2019 was RM0.84 and RM0.80 for 2018. Dividend at the end of 2020 is expected to be 30% of last year's EPS. The firm's growth rate is based on the firm's historical growth in EPS. The corporate tax rate is 25%. Required: (a) If the company undertakes the new project, subject to full utilization of its retained earnings, how many ordinary shares should the company issue to finance the project? (b) Calculate the after-tax cost of the following: (i) New debentures (ii) Retained earnings (iii) New ordinary shares (c) Calculate the WACC for the company.