Please answer both or none! Thank you ahead of time. Explain answer

6

a. Calculate the WACC for the following data: A company raised $100,000,000. $50,000,000 came from the sale of bonds which have a current yield of 8%. $25,000,000 came from the sale of common stock which has a cost equal to 14%. The final $25,000,000 came from the sale of preferred stock which has a cost equal to 10%. The company's tax rate is 50%.

b. You inherit $200,000 from a rich uncle today and invest it all in a mutual fund yielding 8% per year. If you add an additional $5,000 per year to the mutual fund, how much will your total investment be worth in 30 years?