Bradford, Inc is evaluating the following projects based on their weighted average cost of capital. Assume Bradford can raise money at the rate of 11% using the combination of debt and retained earnings, and at the rate of 14% if they use the combination of debt and a new issue of common stock. Bradford does not use preferred stock. If Bradford can raise $40,000,000 at the 11% rate, which of the following project(s) should they undertake?

Project Cost Return

A $30,000,000 18.0%

B $10,000,000 16.0%

C $10,000,000 15.0%

D $20,000,000 12.0%

(a) Project A & B

(b) Projects B, C, & D

(c) Projects A, B, C, & D

(d) Projects A, B, & C

(e) none of the Projects should be undertaken