ASAP as soon as possible Question 2 a) YYY Berhad...

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Finance

ASAP as soon as possible
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Question 2 a) YYY Berhad has a debt-equity ratio of 1.5. Its WACC is 12%, and its cost of debt is 12 %. The corporate tax is 35%. i. Calculate YYY Berhad's cost of equity capital. (6 marks) ii. Calculate YYY Berhad's unlevered costs of equity capital. (4 marks) iii. Calculate the cost of equity if the debt-equity ratio were 2 and calculate cost of equity if the debt-equity ratio changes to 1 and 0 respectively (9 marks) b) Discuss the THREE (3) disadvantages of holding a warrant as investment tools. (6 marks)

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