#3 only and please show your worm

Normal 1 No Spac... Heading 1 Heading 4 Paragraph Styles these bonds. [13 points] *** HINT: What have you found? Semi-annual rate or annual rate? (2) Company BW has $500,000 loan outstanding. The annual loan interest rate is 6% with monthly compounding (meaning BW is making monthly payments). Find the annual after-tax cost of debt for the loan. [10 points] (3) Company BW has issued 2,000 preferred stocks. The par value is $ 100, dividend rate is 8%, and dividend is paid at the end of each year. Market price is $85 a share. Find the annual cost of preferred stock. [10 points] (4) Company BW has 50,000 shares outstanding and the market price is $23 per share. People believe this company is twice as risky as the stock market. Current T-bill rate is 3% and expected stock market return this year is 9%. What is BW's annual cost of equity? [15 points] (5) Find the overall (annual) cost of capital for BW (WACC). [20 points] (6) Company BW has the following two investment opportunities (A and B). a) Which project is better, according to NPV? (15 points] b) Which project is better, according to Modified IRR? [15 points) ***Let's not to consider the difference in the duration of these projects *** Net Cash Flows 1