Solve these problems

(a) Differentiate between debt-intensive and equity-intensive capital structure.

(b) Jaki Corporation has a target capital structure that consists of 40% debt and 60% equity. Jaki can borrow at an interest rate of 10%. Also, Jaki has determined its cost of equity to be 14%. Jaki's tax rate is 40%. Calculate Jaki's weighted average cost of capital.

(c)Assume the following information for Sazea Bhd. a U.S. based MNC that is considering to obtain funding for a project in Malaysia:

U.S. risk-free rate = 4%, Malaysian risk-free rate = 5%, Risk premium on dollar-denominated debt provided by U.S. creditors = 3%, Risk premium on euro-denominated debt provided by Malaysian creditors = 4%, Beta of project = 1.2, Expected U.S. market return = 10%, U.S. corporate tax rate = 30% and Malaysian corporate tax rate = 40%.

Calculate Sazea's cost of dollar-denominated equity.