A firm has the following capital structure: 1.Bonds with market value of $4,500,000 2.Preferred Stock with a market value of $800,000 3.Common stock, of which 200,000 shares is outstanding. Presently, each common stock is selling at $67.50 per share The preferred stock price per share is $75 and pays a $5 dividend. Common stock shares sell for $67.50 and pay a $2 dividend. Dividends for common stock are expected to grow by 1%. Bond price is $950, and the bond coupon rate is 7.0%. The bonds mature in 6 years. The firms tax rate is 38%. The company has $3,000,000 in sales, and expenses of $2,300,000. The initial investment of $5,000,000 will be depreciated straight-line over 10 years. The project is expected to last 10 years. 1.What is the firms Weighted Average Cost of Capital (WACC)? _____________________ (Chapter 13) 2.What is the firms Operating Cash Flow (OCF)? ______________________ (Chapter 9) 3.Using the WACC is the NPV, using the WACC (use the answer from question 1 above), and OCF (use the answer from question 2 above)? ______________________ (Chapter 8) 4.Based on your answer to question #3, would you accept or reject the project? Explain why? _______________________________________________________Chapter 8