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Solve the following questions: a) Megah Systems Solution is based in Kuantan, Pahang, and is...

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Solve the following questions: a) Megah Systems Solution is based in Kuantan, Pahang, and is planning to construct a state-of-the-art building to house its operations supporting back office work for its clients. To fund this project, Megah plans to issue preference shares with a face value of RM500 each. These shares will pay 15 percent dividend on face value. However, due to market conditions, Megah expects to issue these preference shares at a market price of RM460 each. Calculate the cost of capital for the firm for the preference shares. b) The common stock for Meriah Berhad, is currently selling for RM22.50, and the firm paid a dividend last year of RM1.80. The dividends and earnings per share are projected to have anannual growth rate of 4 percent into the foreseeable future. What is the cost of common equity for Meriah? c) HM Distributors have a capital a structure consisting of 45 percent ordinary equity, 25 percent debt, and 30 percent preferred stock issued at 12 percent. The cost of ordinary equity is estimated at 20 percent and the debt charges interest at 10 percent. The corporate tax rate applicable for HM is 30 percent. What will the weighted average cost of capital for HM be

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