CASE 1 (20 points) Tessa Corporation has 75mln debt, 25mln preferred stock, and 3mln shares of common stock outstanding. The current market price of the company's common stock is 50. Its cost of equity is 14 percent, the cost of preferred stock is 9 percent, and the pretax cost of debt is 10 percent. The corporate tax rate is 40 percent. Instructions: 1. Calculate the weighted average cost of capital (WACC) (15 points) 2. If the firm is considering an average risk project with an internal rate of return of 10%, should it accept the project? Explain. (5 points)