Time-30 min 1. FM Company (FMC) issued common share of FMC, worth of Tk. 500 million and it comprises with 1,000,000 ordinary shares. FMC is a listed company, and its current share price is Tk. 250. The dividend paid for the current year was Tk. 02 per share and growth rate of annual dividend payment is 5%. FMC has issued preference shares for a value of Tk. 150 million. This consists of 500,000 preferred shares and annual dividend per share is Tk.02. The last traded price of a preference share was Tk. 250. Long term borrowings of FMC were Tk. 150 million with annual interest rate of 17%. The company pays income tax at the rate of 28% per annum on its profits. What is the firm's cost of capital? 2. FM-group Inc. has 1.5 million shares outstanding at Tk. 02 per share. The beta of FM-group's equity is 1.5. Its market-risk premium is 4.00% and the appropriate risk free rate is 4.00%. FM-group Inc. also has outstanding debt worth of Tk. 10 million. The bonds currently sell at Tk. 895 and have four years left to maturity. The coupon rate of FM-group's long-term debt is 6% and nominal value is Tk. 1,000. What is the firm's cost of capital