An analyst has collected the following information regarding Davidson Corporation:Long Term Bonds $$400,000,000$Preferred Stock $$100,000,000(400,000$ shares outstanding$)$Total Common Equity $$300,000,000$ Common Stock $$285,000,000(20,000,000$ shares outstanding$)$ Retained Earnings $ $15,000,000$Expected per share dividend, Common $$1\mathrm{.}89$Expected per share dividend, Preferred $$20\mathrm{.}00$Marginal Tax Rate $35\%$Interest Expense $($previous year$)$ $$33,360,000$Expected Growth Rate $8\%$Flotation cost for new Common Stock $$\mathrm{.}75$ per sharePresent Bond Yield $($Y$-$T$-$M$)8\mathrm{.}34\%$Retained Earnings available $$15,000,000$Risk Free Rate $4\mathrm{.}0\%$Expected Return of the Market $15\mathrm{.}0\%$Davidsons beta $1\mathrm{.}25$Common and Preferred Stock both selling at Book Value $(1)$ Calculate the Davidsons WACC using Retained Earnings as the equity component cost. $(2)$ What is the largest project Davidson Corporation can undertake before it must raise new equity?