YeeMee Berhad, a producer of instant noodies, is in this situation. The company expects no growth, all earnings are paid out as dlvidends. The debt consists of perpetual bonds. 6 Required: a) What are YeeMee's earnings per share (EPS) and its price per share (P0) ? (6 Marks) b) What is YeeMee's weighted average cost of capital (WACC)? (4 Marks) c) YeeMee can increase it debt by RM8.0 million, to a total of RM10.0 million, using the new debt to buy back and retire some of the shares at current price. Its interest rate on debt will be 12% (it will have to call and refund the old debt), and its costs of new equity will rise from 15% to 17%. EBIT will remain constant. Should YeeMee change its capital structure? (10 Marks) (Total: 20 Marks)