Solve it all the questions

a) Explain how can capital reduces banking risks. (5 marks) b) Suppose a bank is considering to raise external capital either by issuing common stock or debt capital. Evaluate both choices by providing FIVE (5) points for each choice. (10 marks) c) BUNGA RAYA bank plans to launch a new deposit campaign in the hopes to bring in deposits. The bank believes that the offer rate of 3 percent would attract RM250 million in deposits. BUNGA RAYA bank forecasts that if the bank offer 3.5 percent, it can raise RM300 million. Calculate the marginal costs rate of raising new deposit