15. Firm XYZ has the opportunity to invest in Project 123 that is expected to generate the following incremental cash flows: Year Cash Flow $25,000 O= .21 .01.2952(04)+.493.05) $40.000 $35,000 015176+ 011408+ oluau XYZ faces a corporate tax rate of 40%. It has the following financing outstanding: 041 9 Debt: 9,000 bonds with a coupon rate of 6% (paid semi-annually) with a current price quote of 106A and 20 years to maturity. Preferred stock: 150,000 shares of 6 percent preferred stock with a current price of 584 and a par value of $100. Common stock: 400,000 shares outstanding, selling for $55 per share. The company just paid a dividend of $2.63 per share and expects it to grow at 7 percent annually. XYZ will have to issue new securities to finance the project. Flotation costs for new common stock are 7 percent, for new preferred stock, 4 percent, and for new debt. 3 percent. What is the most that the firm can spend in order to just break even on the project? (15 points) D - 9,000 x 1064 = 9,576,000 P - 150,000 x 84 = 12,600.000 E - 400,000 X 55 = 22,000,000 44,176,00 B E. 9,576,000 44,176,000 12,600,000 44,176.00