iCapital is one of the top private equity firms specialized in fintech projects. The company is preparing a financial plan for the coming year and has the following four independent new fintech projects in Table 4.1 to consider: Product code name Initial investment (5 million) Table 4.1 Internal rate of return (%) Risk adjustment factor (%) 30 Club Diamond Heart Spade Since the risks associated with the four new projects are different, a risk adjustment factor (RAF) has been assigned to each project in order to adjust their required rate of return with the firm's cost of capital respectively. The weighted average cost of capital (WACC) of iCapital is currently 20%. The accountant of the company estimates that the earnings after tax (EAT) in this financial year should be $27 million. iCapital has 4 million ordinary shares outstanding and the board would like to maintain a debt-to-equity ratio (D/E) of 3. Required: (a) With the information above, identify which project(s) are acceptable by iCapital. Also, identify the total amount of planned capital expenditure of the firm for the coming year. (b) Suppose iCapital adopted the residual dividend policy. Assess the maximum amount of dividend per share (DPS) to its shareholders this financial year (c) Explain two potential problems iCapital may encounter if the firm abandoned the RAF and directly use its WACC to determine the acceptance of new projects