e. Suppose Gao is evaluating three projects with the following characteristics: (1) Each project has a cost of $1 million. They will all be financed using the target mix of long-term debt, pref stock, and common equity. The cost of the common equity for each project should be based on the beta esti the project. No new equity will be issued. (2) Equity invested in Project A would have a beta of 0.5 and an expected return of 9.0%. (3) Equity invested in Project B would have a beta of 1.0 and an expected return of 10.0%. (4) Equity invested in Project C would have a beta of 2.0 and an expected return of 11.0%