JB Hanover and Company has 4% coupon bonds that will mature in 17 years. The Bonds are currently selling for $620. The company uses the weighted average cost of capital to evaluate the feasibility of all business opportunities. The company is currently reviewing two proposals; proposal 1 provides a return of 9.5% while proposal 2 provides a return of 7.8%. The company is not sure how to proceed. The company's tax rate is 40%. The Company's capital structure is as follows: Source of Capital Bonds (LTD) Preferred Stock Weight 60% Cost 9.5% 11% Common Stock 20% Determine the following: ) The after tax cost of the bonds O Determine the weighted average cost of capital Should the company accept any of the proposals? If so, which one? Why