FMF Enterprises has $12,000$ bonds outstanding that have a $6\%$ coupon rate and a $$1,000$ par value.The bonds are selling at a quoted price of $98,$ pay interest semi$-$annually, and mature in $28$ years.There are $400,000$ shares of $6$ percent $$100$ par value preferred stock outstanding with a currentmarket price of $$83$ a share. In addition, there are $1\mathrm{.}40$ million shares of common stock outstanding with a market price of $$54$ a share and a beta of $1\mathrm{.}2.$ These shares were originally sold for $$30$ each. The common shareholders received a dividend of $$1\mathrm{.}80$ per share last year. Based on the last $5$ years growth, the company estimates a growth rate in dividends of $4\%$ forever. The firm's marginal tax rate is $34\%.$FMF Enterprises is considering a major expansion that would cost $$25$ million for the purchase of new capital equipment. The project is expected to provide cash flows before tax of $$3$ million per year for $20$ years. At the end of $20$ years the machine can be salvaged for $$2$ million. The machine belongsto asset class with a CCA rate of $25\%.$ Assume the class will stay open at the end of the project.Flotation cost to issue new preferred share is $5\%,$ new debt is $3\%,$ and new common share is $7\%.$The company considers the current capital structure to be optimal and the risk associated with the expansion is considered to be the same as the company on average. $($a$.)$ Calculate the after$-$tax cost of debt. Use approximation formula and ignore the compounding.Show your work.$($b$.)$ Calculate the cost of preferred shares.$($c$.)$ Calculate the cost of equity.$($d$.)$ Calculate the market value capital structure for the firm.$($e$.)$ Calculate the after tax weighted average cost of capital $($WACC$)$ using the market value weightingfor the firm.$($f$.)$ Calculate the weighted average flotation costs.$($g$.)$ Calculate the initial investment $($adjusted$)$ for the expansion project.$($h$.)$ Calculate the present value of the after$-$tax operating cash flows. $($i$.)$ Calculate the present value of the tax shield for the project. Use CCA tax shield formula fromFinance I course.$($j$.)$ Calculate the present value of the terminal cash flows.$($k$.)$ Using an NPV analysis, would this expansion create value for FMF Enterprises?