Can-One Packaging (COP) is reviewing its cost of capital in anticipation of the upcoming year investment opportunities available. The weighted average cost of capital (WACC) is to be measured by using the following optimal capital structure weights: Long Term Debt 40% Common stock equity 60% Debt: COP 11% coupon bonds with 5 years to maturity, is currently being traded for 101.9072. The bond pays interest semi-annually. COP can borrow unlimited amount at this before tax cost. COP tax bracket is 35%. Equity: Common stock is currently trading at $4.00 per share. Last dividend paid at the end of last year (2019) was $0.20. Its dividends are expected to grow at the rate of 6% per year for some foreseeable future. If your company must issue new common stock, the flotation cost for new issue of common stock is estimated to be $0.50 per share. a. What is the after tax cost of debt? (4 marks) b. What is the cost of retained earnings and cost of new common equity? (7 marks) c. If COP is required to issue new common equity to finance the equity portion of its capital investment, what is its WACC? (5 marks) d. Suppose COP is evaluating the following average-risk projects. Which project/s, if any, should be accepted and how much will the total investment be? (4 marks) Project A B D Cost (SM) $2.2 $2.5 $2.3 $2.4 IRR (%) 11.93 10.65 10.05 9.85