QUESTION 3 YJY Bhd is evaluating the optimal capital structure based on the information below: Source of Capital Percent

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QUESTION 3 YJY Bhd is evaluating the optimal capital structure based on the information below: Source of Capital Percent

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QUESTION 3
YJY Bhd is evaluating the optimal
capital structure based on the information below:
Source of Capital
Percentage of
Financing
Debt
38%
Ordinary shares
42%
Preference shares
20%
Additional
information:
Share price
RM
4.10
Floatation
cost
RM
0.20
Share
price
RM1.20
Floatation
cost
RM0.11
Required:
Calculate the weighted average cost of
capital (WACC) for YJY Bhd.
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