Question: help pls!!please show the calculations step by step Metaverse Bhd's equity has a beta of 1.1. The market's expected return is 13% and Treasury bills
help pls!!please show the calculations step by step
Metaverse Bhd's equity has a beta of 1.1. The market's expected return is 13% and Treasury bills currently yield 7%. The firm also has a semi-annual bond issue outstanding that matures in 20 years and pays a 9% p.a. coupon. The bonds currently sell for RM970. Assuming the corporate tax rate is 40% and the firm's debt-equity ratio is 0.40 : (i) What is the company's cost of debt? (2 marks) (ii) What is the company's cost of equity? (2 marks) (iii) What is the company's weighted average cost of capital? (3 marks) (Total: 33 marks)
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