Answer questions in the following, and provide detailed calculationswhere needed.Question $1$: Weighted Average Cost of Capital $($WACC$)$Florida Electric Company $($FEC$)$ uses only debt and equity. It canborrow unlimited amounts atan interest rate of $10$ percent as long as it finances at its targetcapital structure, which calls for$45$ percent debt and $55$ percent common equity. Its last dividend was$$2,$ its expected constantgrowth rate is $4$ percent, its stock sells at a price of $$25,$ and newstock would net the company$$20$ per share after flotation costs. FECs marginal tax rate is $40$percent, and it expects to have$$100$ million of retained earnings this year. Two projects areavailable: Project A has a cost of$$200$ million and an expected return of $13$ percent, and Project B has acost of $$125$ million andan expected return of $10$ percent. All of the companys potentialprojects are equally risky.a$.$ What is FECs cost of equity from newly issued stock?b$.$ What is FECs marginal cost of capitalthat is$,$ what WACC cost rateshould it use toevaluate investment projects $($these two projects plus any others thatmight arise duringthe year, provided the cost of capital sched$-$ ule remains as it is currently$)?$