MSBM has the following capital structure and associated cost: Structure Bonds Common Stocks $25M $50M MSBM is also eyeing the following investment options in hybrid cars: Cost 12 % % 20% Duration Toyola Hybrids Nissan Hybrids Honda Hybrids Year Cash Flows Cash Flows Cash Flows 0 -300,000 -250,000 -200,000 1 150,000 160.000 60,000 2 180,000 120,000 80,000 3 160,000 80,000 140,000 Determine: (a) The weighted average cost of capital if corporate tax is 25%. (b) The project(s) that MSBM should reject (c) A preferred stock is expected to pay a dividend of $10 per share fifteen years from today. If you require a rate of 10 % per annum, establish the price of the stock. Marks (5) (8) (2)