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In financing its 5200M project, Lee Corp. issues 520M par value of preferred stocks, 575M par value of long-term debt: and finances the balance with common stocks that have a stock beta of 115. Its 10-year bonds: which have a 7% coupon rate, are priced at an 8% discount from the par value. Its preferred stocks have a 6% annual dividend rate on a par value of 550, and are priced at 555 per share. Assume that the capital market is pricing all financial securities at their respective fair values, and the risk-free rate and the market rate of return, respectively, 2% and 15%. (a) Compute the weighted average cost of capital (WACQ, which is based on the marker values of financial securities issued, for Lee Corp assuming that the marginal corporate tax rate is 35%. (b) The flotation costs for raising new debt capital, preferred stock capital and equity capital are, respectively, 3%, 6% and 18% Besides, this $200M project is expected to generate a NP T of $18M. Compute the weighted average flotation cost, and the adjusted NPV of this proj ect after taking into account of the flotation costs