QUESTION Yoyo Bhd is currently enjoying its pioneer status. However, its pioneer status is expiring and starting from next year, the company will start paying tax of 25%. It has 3 million units of shares with a market price of RM15 per unit. Yoyo Bhd is an all equity financed company with annual earnings before interest and tax of RM15 million per annum in perpetuity. The company's current cost of equity is 16%. The top management of Yoyo Bhd believe that the company should undertake borrowing to increase its value. Required: a. Determine the current value of Yoyo Bhd and its weighted average cost of capital. b. On expiry of its pioneer status, recalculate the value of the company and its weighted average cost of capital. 0. On expiry of its pioneer status, if the company plan to borrow RM30 million of corporate debt at 7% interest, calculate the following: i. Firm's value ii. Firm's cost of equity iii. Firm's weighted average cost of capital d. If the company plans to issue additional RM15 million of debt and use the proceeds to redeem ordinary shares, calculate the new value of the rm, its cost of equity and the weighted cost of capital after restructuring