YeeMee Berhad, a producer of instant noodles, is in this situation. EBIT Tax Rate = RM4.0 million = 25% = RM2.0 million Debt outstanding Kd Ks Share outstanding = 10% = 15% = 600000 Book value per share = RM10.00. The company expects no growth, all earnings are paid out as dividends. The debt consists of perpetual bonds. Required: a) What are YeeMee's earnings per share (EPS) and its price per share (Po)? b) What is YeeMee's weighted average cost of capital (WACC)? (6 Marks) (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)