SBS Corp is considering the purchase of a plant that will cost RM50 million. The purchase of the plant is expected to provide a return on invested capital ROIC of 23%. The forecast Earnings Before Interest and Tax (EBIT) is RM20 million. The company is evaluating 2 financial plans for the purchase. The corporate tax rate is 25%. i. Planl: 100% financing with equity ii. Plan2: Financing 30% of the purchase of the plant by issuing a bond with a coupon rate of 8% A similar company in the stock market that uses a capital structure of 30% debt and 70% has a systematic risk of 1.5. The stock market average return is 20%. The fixed deposit rate offered by banks currently is 2.8%. The stock market regards this fixed deposit rate as free of any risk. a. Calculate the systematic risk for Plan 1. b. What is the cost of equity if the company decides on financing Plan 1? C. Calculate the weighted average cost of capital if the company chooses Plan 2? d. Based on your analysis, should the company go ahead with the purchase of the plant and which financing plan should the company choose. e. Calculate the Net Operating Profit After Tax (NOPAT) and the Economic Value Added (EVA) of the plant. Is there any difference to your decision based on the calculations of the EVA and the decisions of part d