Part 2 (1000 words, 50 marks): Assuming the company is raising external capital for two new projects worth £100m each in

[answerhappygod]

Part 2 (1000 words, 50 marks): Assuming the
company is raising external capital for two new projects worth
£100m each in two different industries and the management is
planning to use the same discount rate to evaluate these two
projects:

What would be the pros and cons of using equity and debt
financing?
Calculate the cost of capital of the external capital given
current market conditions.
Discuss the discount rate that the company should use to
evaluate the two projects. Should the use the same discount rate
for both projects?
You can make any assumption you would think of about the
projects, about the market, about the company that is useful for
your discussion in the following parts. You should specify the
industries for your projects, for example one in consumer goods and
another in financial sector etc