The following information applies to Ekovest Bhd: All earnings generated are paid out as dividends since the product market for its product is stable and expects no growth. The debt consists of perpetual bonds. Required: a) What are Ekovest Bhd's earning per share (EPS) and its price per share? (7 Marks) b) Ekovest can increase its debt by RM7 million, to a total of RM11 million, using the new debt to buy back and retire some of the shares at current price. Its interest rate on debt will be 11% (it will have to call and refund the old debt), and its cost of new equity will rise from 14% to 16%. Operating income will remain constant. Should Ekovest change its capital structure? (10 Marks) c) If Ekovest did not have to refund the old debt of RMX million, how would this effect things? (8 Marks) Palmer Bhd. markets tennis balls to various clients throughout Malaysia. The company is reviewing its purchasing policy. It expects to sell 750,000 tennis balls next year. A 3 -Ball can have a selling price of RM29.75 and is purchased for RM8.25 per ball. The company places an order for 187,500 tennis balls at regular intervals throughout the year. Storage and other carrying cost are estimated at RM0.05 per ball. Ordering cost is RM235 per order. The company maintains a safety (buffer) stock which is sufficient to meet demand for 20 working days and the delivery time is 14 days based on a 365 -day year. The demand for such balls per year is about 250,0003 -Ball cans. Required: a) Calculate the reordering level. (4 Marks) b) Calculate the annual cost of the current ordering policy. (9 Marks) c) Calculate the annual cost of the economic order quantity model policy. (9 Marks) d) What order size should the company place