(Note: This problem uses the Project Market Line (PML), which is similar to the SML but different in its application.) The Jones Corporation is considering two average-risk projects with the following costs and rates of return: Project Beta A 0.50 B 2.00 The company estimates it can issue debt at a rate of ra = 10%, and its tax rate is 30 percent. It can issue preferred stock that pays a constant dividend of $5 per year at $49 per share. Also, its common stock currently sells for $36 per share, the expected dividend, D, is $3.50, and the dividend is expected to grow at a constant rate of 6 percent per year. The target capital structure consists of 75 percent common stock. 15 percent debt, and 10 percent preferred stock. Assume that TRF = 4%, 12%, expected return to project A is 10%, and the expected return to project B is 15%. (a) What is Jones' WACC (or, TWACC)? Which projects should Jones accept? (b)