Question 6 a. Complete the below table. (8 marks) Advantage Disadvantage Dividend Growth Model 1. 2. 1. 2. 1. 2. Security Market Line (SML) 2. b. Lee Yi Kyung's Boutique just paid an annual dividend of RM 2.30 on its common stock. The firm increases its dividend by 2.5 percent annually. What is the rate of return on this stock if the current stock price is RM43.70 a share? (3 marks) c. The 8.2 percent preferred stock of Kang Dong Won Coporation is selling for RM63 a share. What is the firm's cost of preferred stock if the tax rate is 35 percent and the par value per share is RM100? (2.5 marks) d. Lee Min Jung's Bridal Shop has 27,000 shares of common stock outstanding at a price of RM18 a share. It also has 14,000 shares of preferred stock outstanding at a price of RM29 a share. There are 75 bonds outstanding that have a 7.5 percent semiannual coupon. The bonds mature in six years, have a face value of RM1,000, and sell at 97 percent of par. What is the capital structure weight of the common stock? (8 marks) (Total Marks: 21.5 marls) Question 6 a. Complete the below table. (8 marks) Advantage Disadvantage Dividend Growth Model 1. 2. 1. 2. 1. 2. Security Market Line (SML) 2. b. Lee Yi Kyung's Boutique just paid an annual dividend of RM 2.30 on its common stock. The firm increases its dividend by 2.5 percent annually. What is the rate of return on this stock if the current stock price is RM43.70 a share? (3 marks) c. The 8.2 percent preferred stock of Kang Dong Won Coporation is selling for RM63 a share. What is the firm's cost of preferred stock if the tax rate is 35 percent and the par value per share is RM100? (2.5 marks) d. Lee Min Jung's Bridal Shop has 27,000 shares of common stock outstanding at a price of RM18 a share. It also has 14,000 shares of preferred stock outstanding at a price of RM29 a share. There are 75 bonds outstanding that have a 7.5 percent semiannual coupon. The bonds mature in six years, have a face value of RM1,000, and sell at 97 percent of par. What is the capital structure weight of the common stock? (8 marks) (Total Marks: 21.5 marls)