33. Problem 10.02 (Cost of Preferred Stock) eBook Torch Industries can issue perpetual preferred stock at a price of $67.50 a share. The stock would pay a constant annual dividend of $4.50 a share. What is the company's cost of preferred stock, 1. Round your answer to two decimal places. Midwest Water Works estimates that its WACC IS 10.56%. The company is considering the following capital budgeting projects. Assume that each of these projects is just as risky as the firm's existing assets and that the firm may accept all the projects or only some of them. Which set projects should be accepted? Project Size $1 million 12.0% 2 million 11.2 Rate of Return -Select 11.5 V V B D E F G 2 million 2 million 1 million 1 million 1 million 11.0 10.7 10.3 10,2 -Select -Select- Select Select v The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 14%, its before-tax cost of debt is 12%, and its marginal tax rate is 25%. Assume that the firm's long-term debt sells at par value. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1,112. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Assets Liabilities And Equity Cash $ 120 Accounts payable and accruals $ 10 Accounts receivable 240 Short-term debt 42 Inventories 360 Long-term debt 1,070 Plant and equipment, net 2,160 Common equity 1,758 Total assets $2,880 Total liabilities and equity $2,880 Calculate Paulson's WACC using market value weights. Do not round intermediate calculations. Round your answer to two decimal places