Question 3 SeaceraTiles Corp is considering the following average risk projects for its next investment period Project Investment (RM) 2,000,000.00 2,500,000.00 3,000,000.00 1,500,000.00 2,000,000.00 IRR (%) 11.90 11.25 12.17 11.72 11.03 Seacera has 10,000 bonds outstanding that were issued for 30 years ten years ago at a par value of RM 1,000.00 and a coupon rate of 12%, with interest paid semi-annually. Similar bonds are now selling to yield 9%. Tax rate is 40% It issued 40,000 shares of 6% preferred stock at an RM100.00 par value eight years ago Those preferred shares are now selling to yield 10%, and are subject to an 8% flotation cost There are currently 2,500,000 of common stock outstanding selling for RM11.60 a share Expected dividend to be paid is RM0.93 per share and dividends are expected to grow at the rate of 6% Develop Seacera's market value based capital structure, calculate its WACC. Assume equity capital comes from retained earnings. Based on the WACC estimates calculated, which project/s if any, would be selected and what is the total investment/s for the next planning period