Question 2 (15m) a. Shares of public limited companies are divided into two categories. State any of five differences for the both categories of shares. (10m) b. What is bond? Explain two reasons why bond has lower risk than preference share? (5m) Section B Answer only ONE question from this section Question 1 (10m) The RajMoh Corporation is analyzing three capital projects with expected cash flow as follows: Year Project A Project B Project C (RM) (RM) (RM) 0 (300,000) (300,000) (300,000) 1 70,000 100,000 80,000 2 70,000 120,000 80,000 3 70,000 150,000 120,000 4 70,000 180,000 120,000 70,000 120,000 70,000 Determine which project should choose by RajMoh Corporation under: a. Payback Method (7m) b. State one advantage and two disadvantages of payback period method. (3m)