#6 please show your work

has issued 2,000 preferred stocks. The par value is $100, dividend ate 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 *** I Net Cash Flows End of Year Project A Project B -8,000 -6,000 500 2,500 2 11,500 3,500 3,500 3.000 ANO has issued 2,000 preferred stocks. The par value is $100, dividend ate 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 *** I Net Cash Flows End of Year Project A Project B -8,000 -6,000 500 2,500 2 11,500 3,500 3,500 3.000 ANO