FPT has 90,000 bonds outstanding that are selling at par. Bonds with similar characteristics are yielding 6.75%. The company also has 750,000 shares of preferred stock and 2.5 million shares of common stock 4 | Page outstanding. The preferred stock sells for $53 a share and pays $7 dividend per share. The common stock has a beta of 1.34 and sells for $42 a share. The risk free rate is 2.8% and the return on the market is 11.2%. The corporate tax rate is 32%. a. Calculate the capital structure weights. (6 points) b. Calculate WACC of FPT. (8 points) C. FPT is considering investing in the new project that is riskier than current business of the company. Should the company use WACC to discount cash flow? Explain? (6 points)