Question: Micro System Berhad is a company that involves in manufacturing industry. The following is the company's latest Statement of Financial Position, which is on the

 Micro System Berhad is a company that involves in manufacturing industry.

Micro System Berhad is a company that involves in manufacturing industry. The following is the company's latest Statement of Financial Position, which is on the basis of book-value Micro System Berhad Statement of Financial Position as at December 2017 Assets RM 000 Liabilities and Shareholders' RM 000 Equity Cash and short term 2,000 Bonds, coupon =6 percent, paid 5,000 securities annually (maturity = 10 years, par value RM1,000) Account receivable 3,000 Preference shares (par value 3,000 RM15 per share) Inventories 7,000 Ordinary shares (Par value 400 RM020) Plant and Equipment 21,000 Additional paid-in stockholders' 13,600 equity Retained earnings 11,000 TOTAL 33,000 TOTAL 33,000 The preference share is currently sells for RM30 per share and the ordinary share for RM16 per share. In addition, the company's preference share pays a dividend of RM3 per share, the beta of the ordinary share is 0.9. the market risk premium is 9 percent and the risk free rate is 5 percent. The bond's current yield to maturity is 8 percent. Micro System Berhad has 2 million ordinary shares outstanding. The company's tax rate is 40 percent. Required: a) Determine the total market value of the company's bonds. b) Compute the total market value of the company's preference shares c) Calculate the total market value of the company's ordinary shares. d) Determine the capital structure of the company on the basis of market values. e) Determine the company's weighted average cost of capital

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