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A. Seal Bhd has the following capital structure, which it considers to be optimal. Debt 25% Preferred stock 15% Common equity 60% Seal Bhd paid a dividend of RM 3.60 per share last year and its stock currently sells for RM 54 per share. The tax rate is 40% and investors expect future earnings and dividends to grow at constant rate of 9%. Seal Bhd can obtain new capital in the following ways: i. New preferred stock with a dividend of RM 11 can be sold to the public at a price of RM 95 per share. ii. Debt can be sold at an interest rate of 12%. Required: Calculate the weighted average cost of capital of Seal Bhd. (10 marks) B. Firm uses behavioral approaches in dealing with risk in capital budgeting. Describe the THREE (3) approaches namely, the breakeven analysis, scenario analysis and simulation. (9 marks) C. Explain how the exchange rate risk and political risk affect capital budgeting. (6 marks)