Exotic Food's common stock is currently listed at $75 per share; new preferred stock sells for $80 per share and pays a dividend of $5.00. Last year, the company paid dividends of $2.00 per share for common stock, which is expected to grow at a constant rate of 10%. The local bank is willing to finance the project at 10.5% annual interest. The company's marginal tax rate is 35%, and the optimum target capital structure is: Common equity 50% Preferred 20% Debt 30%

What is the Weighted Average Cost of Capital (WACC)? Compute the after-tax cost of debt, the cost of common equity, the cost of preferred stock, and the Weighted Average Cost of Capital (WACC)

Using a WACC of 15%, apply four capital budgeting techniques to evaluate the project, assuming the Free Cash Flows are as follows: Years Free Cash Flows 0 ($252,000.00) 1 $118,625.00 2 $127,125.00 3 $181,000.00 The four techniques are NPV, IRR, MIRR, and discounted Payback. Assume the reinvestment rate to be 8% for the MIRR. Also, assume that the business will only accept projects with a payback period of two and half years or less.