The Finance Manager of Plaggio Ltd. believes that the cost of capital of a firm influences firm value and that it is very much related to the capital structure policy of a firm. The capital structure of a firm consists of debt and equity. To determine the cost of capital of the firm, he has collected the following information: i) The firms capital structure comprises of 30 per cent debt and 70 per cent equity. ii) The firm has bonds outstanding with 20 years to maturity; 12 per cent annual coupon rate; face value of RM1,000; and the current bond price is RM1,252 iii) The firm uses Capital Asset Pricing Model (CAPM) to compute the cost of equity with the risk free rate at 2.5 per cent per annum, stock beta of 1.6 and market return of 12% per annum. iv) The firm pays tax at a rate of 30 per cent. Task 1: An overview of the organisation and objectives of the assignment (about 250-350 words) ----------------------------------------------------------------------------------------------------------------------------------------- Task 2: Discussion on the Evaluation techniques of investment appraisal, using the information provided, including the justification for the project to be chosen , under each technique used, together with the advantages and disadvantages of each. Task 3: Discussion of the capital structure of an organisation Task 4: Discussion on the weighted average cost of capital and how/why it is computed. Task 5: Discussion on the factors that could affect the cost of capital Task 6: A critical discussion of the different ways capital can be raised by an organisation