Bella Corp. is planning a $25 million expansion to be financed with debt and common stock. The target capital structure is 20% debt and the rest is from equity. The tax rate is 25%. Bonds: The yield on the bonds is 4.46%. Bella has a current dividend of $2.50. The retention rate is 40% and the return on equity is 15%. The price of common stock is $40 per share. a) Calculate the weighted average cost of capital. Carry work out to 4 decimal places (so your answer is either xxxx OR xx.xx96) b) The expansion is expected to produce cash flows of $9 million every year for the next 3 years. Use the WACC to find the net present value. C) Should they expand? Explain