(b) Armani Berhad and Ardeena Berhad are identical in every respect except that Armani Berhad is unlevered while Ardeena Berhad has RM2,000,000 of 5 percent debt outstanding. Assume that all of the Modigliani and Miller assumptions are met, the Earnings Before Interest and Tax (EBIT) is RM1,500,000 and the cost of equity to Armani Berhad is 18 percent. Determine: Weighted Average cost of Capital (WACC). (8 marks) New Weighted Average Cost of Capital (WACC) if the tax rate is 38 percent. (12 marks) i. ii. 25 marks (b) Armani Berhad and Ardeena Berhad are identical in every respect except that Armani Berhad is unlevered while Ardeena Berhad has RM2,000,000 of 5 percent debt outstanding. Assume that all of the Modigliani and Miller assumptions are met, the Earnings Before Interest and Tax (EBIT) is RM1,500,000 and the cost of equity to Armani Berhad is 18 percent. Determine: Weighted Average cost of Capital (WACC). (8 marks) New Weighted Average Cost of Capital (WACC) if the tax rate is 38 percent. (12 marks) i. ii. 25 marks