A fim has the following capital structure:

Bonds with market value of $$2,000,000$

Preferred Stock with a market value of $$700,000$

Common stock, of which $100,000$ shares is outstanding. Presently, ench common stock is selling at $$20$ per share

The preferred stock price per share is $$40$ and pays a $$2$

dividend. Common stock shares sell for $$20$ and pay a $$2$ dividend. Dividends for common stock are expected to grow by $2\%.$ Bond price is $5970,$ and the bond coupon rate is $6\mathrm{.}0\%.$ The bonds mature in $10$ years.

The fim's tax rate is $30\%.$ The company has $$2,000,000$ in sales, and expenses of $$1,175,000.$ The initial investment of $$5,000,000$ will be depreciated straight$-$line over $10$ years. The project is expected to last $10$ years.

What is the fim's Weighted Average Cost of Capinal $($WACC$)?$

$q,($Cnther $10)$

What is the fim's Operating Cash Flow $($OCF$)?$

$q,($Chapter $9$

Using your computed WACC compute the NPV$.($cse the cuswer from guestion $1$ above$).$ and OCF $($use the ouswer from quartion $2$ above$)q,($Conpter$)$

Based on your answer to question $$3,$ would you ascept or reject the projeet? Ekplain why? $q,$ Conpters