a) Thomson Bhd. has a target debt to equity ratio of 0.65. The debt consists of 7.5 percent semi-annual coupon bonds with a maturity of 15 years. The bond is currently sell at 95.65 percent of par, and the par value is RM1,000. The firm's stock is currently priced at RM38 per share, has a beta of 1.15, market risk premium of 7.5 percent, and risk-free rate is 5 percent. The firm's tax rate is 21 percent. Compute the appropriate discount rate if the firm is evaluating a new project that has the same risk as the firm's typical project. (11 marks)