2. Washington Corporation has the following capital structure. The company's before-tax cost of debt is 8 % The company's cost of preferred stock is 10%. The company's cost of common equity is 14.5 %. The company's tax rate is 30% . Debt Preferred Stock Capital Structure (in millions) $2,000 500 Common Equity Total 2.500 $5,000 a. What are weights for the capital structure? b. What is the company's WACC? c. If the company has the following proposed independent projects that are of the same risk as the firm explain which projects should be selected. What is the optimal capital budget? Project IRR Cost of Project $4 milion $1 milion $3 million 55milion 12%6 11%6 20% A B C D