Bunga Merah Berhad (BMB) is a company having business in Marrakesh, Morocco. BMB's before tax cost of debt is 15%. BMB's perpetual preferred stock is at a price of RM50 a share. The preferred stock issue is expected to pay a constant annual dividend of RM4.80 a share. BMB's common stock has a beta of 1.20. The market risk premium is 8% and the risk-free rate is 4%. The tax rate is 30%. From the above information, you are required to answer the following questions. a. Compute: i. after-tax cost of debt ii. cost of preferred stock iii. cost of common stock (2 Marks) (2 Marks) (2 Marks) b. BMB has a target capital structure of 50% common stock, 10% preferred stock and 40% debt. Based on your computation in part (a), calculate BMB's Weighted Average Cost of Capital (WACC). (2 Marks) c. BMB is considering a project that will give a return of 5%. Should BMB proceed with this project? Explain your answer. (2 Marks) (Total: 10 Marks)