Part IV: Problems (36 points) I. (10 points) Orca Bay Chemical stock has a beta of 1.30. The company retains 65% of their net income and analysts have estimated a growth rate of dividends of 4%. The current dividend is $3.00 per share and the company's stock is selling at $37.50. The company also recently issued 30 year maturity bonds at a discounted price of $960 but did not receive the full $960 as they paid 3.50% flotation costs. The bond's face value is $1000. The bonds pay a semi-annual coupon and the annual rate equity, and the tax rate is 40%, what is the company's WACC? The company is also considering a project with an IRR of 15%. Should it be accepted? is 8%. The company's target capital structure is 40% debt and 60%