ABC Corp has 20,000 shares of bonds outstanding, with a coupon rate of 6%, face value of $1,000, and 30 years to maturity. The bonds are selling for 110 percent of par and make semiannual payments. The company also has 600,000 shares outstanding of common stock, selling for $67 per share. The beta of the stock is 1.29. a. If the Treasury bill rate is 3% and the market risk premium is estimated at 7%., what is ABCs cost of equity capital? b. What is the W ACC? c. If a project will pay a cash flow of 10,000 next year and then cash flows growing at a rate of 4% over the next 3 years (for a total of 4 of cash flows), what is the most ABC is willing to spend on the initial investment for this project?