Bobcat Inc. provides you with the following information about firms cost of capital. - Tax rate = 24%. - 6-year, 4.5% coupon, semiannual payment non-callable bonds sell for $1050. New bonds will be privately placed with no flotation cost with $1,000 par value. - Perpetual preferred stock sells for $98 with 6% annual dividend on the par value, $100 par value, - The firm plans to issue new common stock with the flotation cost of 3%. Common stock currently sells for $110. D0 = $6 and g =2%. - Target capital structure: 30% debt, 20% preferred, 50% common equity. Assume that Bobcat Inc. is considering project S with the following cash flows. Use WACC from the first part to complete your capital budgeting analysis. Year 0 1 2 3 Cash flows -4,000 -1,000 3,000 5,000 Bobcat Inc. only accepts a project with less than 2 years of payback. Questions 1. Find WACC (15 points) 2. Find NPV, IRR, MIRR, Payback Period (15 points) 3. Should Bobcat Inc. invest in project S based on the capital budgeting criteria for NPV, IRR, MIRR, and Payback period? Why? Please make sure to explain the decision criteria for each method as part of your answer. (5 points)