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Ch 10: End-of-Chapter Problems - The Cost of Capital Ziege Systerms is considening the following independent projects for the coming year: Ziege's WACC is 10.50%,

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Ch 10: End-of-Chapter Problems - The Cost of Capital Ziege Systerms is considening the following independent projects for the coming year: Ziege's WACC is 10.50%, but it adjusts for nsk by adding 2% to the WACC for high risk projects and suberacting 2% for low-risk projects. a. Which projects should Ziege accept if it faces no coptal constraints? b. If Ziege can only invest a total of $13 million, which projects should it accept? If Ziege can only invest a total of $13 million, what would be the dollar size of its capital budget? Enter your answer in mallicns, For example, an answer of $10,550,000 should be entered as 10.55 . Round your answer to two decomat places: $ malion c. Suppose Ziege can raise additional funds bevond the $13 mallion, but each new increment (or partial increment) of $5 million of new capitial will cause the WACC to increase by 1\%. Assurning that Ziege uses the same method of nsk adjustment, which projects should it now accept? What would be the dollar size of its copital budget? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55 . Round your answer to two decimal ploces

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