1.Hartley Psychiatric, Inc. needs to purchase office equipment costing $2 million. Hartley will collect $800,000 by issuing bank loans and rest of the required capital will be collected from retained earnings. Common stock is currently selling for $23.80. Dividends paid last year were $0.70. The dividends and earnings per share are projected to have an annual growth rate of 15%. Flotation cost 5% and its pre-tax cost of debt is 8%. Assume the firm's tax rate is 35%. What is the weighted average cost of capital of the project?