Kemuning Bnd decides to diversify its business portfolio into a new project that is different from the existing business operation. Prior to approval, the board of directors asked the Finance Manager, Mr. Izzat Danish. to evaluate the low-risk project in view of economic uncertainty. Currently, the composition of the capital structure Kemuning Bhd is 60% equity and 40% debt. Mr. Izzat observed two companies; Anggerik Bhd and Orkid Bhd are appropriate to be a proxy companies for a new project. The information regarding both companies is as follows: The risk-free rate of return is 5% per year and the equity risk premium is 7% per year. Required: L. Recommend one of the proxy companies to the board of directors' Kemuning Bhd. Provide reasons to juslify your recommendation. ii. Calculate the project-specific cost of equity for the proposed new investment. (5 marks) Kemuning Bnd decides to diversify its business portfolio into a new project that is different from the existing business operation. Prior to approval, the board of directors asked the Finance Manager, Mr. Izzat Danish. to evaluate the low-risk project in view of economic uncertainty. Currently, the composition of the capital structure Kemuning Bhd is 60% equity and 40% debt. Mr. Izzat observed two companies; Anggerik Bhd and Orkid Bhd are appropriate to be a proxy companies for a new project. The information regarding both companies is as follows: The risk-free rate of return is 5% per year and the equity risk premium is 7% per year. Required: L. Recommend one of the proxy companies to the board of directors' Kemuning Bhd. Provide reasons to juslify your recommendation. ii. Calculate the project-specific cost of equity for the proposed new investment