please answer Q(c) and the multiple choices questions

Finaneing Cost Data Star Products Company $450.000 will have a before-tax eost, for of 213.97. Prefeered stock Prelerned stock, regardless of the amount sold, can be issued wif a 570 par value and a 14.0% annual dividend rale and will net $65 per share after fotation costs. underpricing and fotation costs. To Do a. Calavale the cost of each source of Inancing, as speofied: (1) Long-term dett, frst $450,000. (2) Long-tem dect, greater than $450,000. (3) Prederred stock, all amourbs. (4) Common stock equity. frst 31,500,000. (5) Common stock equity. greater than $1,500.000. b. Caiculate Star's weightid average cost of cactial (WACC) Sor each of the folowing shuations: (1) Loeg-term deet was than $450,001 arid eommen stock equily less then $1,500,001. C) Long-term dest greater than $450.000 and common atock equily less than $1,500.001. (3) Long-tem dest greater fan $450,000 and common stock equity greater than $1,500.000. 6. Anseer the folowing quesions whle oonsidering star's cument captal structure and your anwwens bo part (b). Be sure to eaplain your anwers. (1) How much long-term debt can Star use before affecting its oont of common stock? (2) What is the maximum amount of finaving that shar can rwise without ving the more eapentive few cormon stock? d. Regardess of star's WMCC, rarik the profecte accocding to most attractive to lasit attractive and applain your racking prochdure. (1) Long-tay deet of 5450,000. 2) Coemon siock equily of 3750,000 . (9) Commen stock equily of 11,500,000. (4) Long-term deet of 51, 000.000. Making Star Products' Financinglinvestment Decision Star Products Company is a growing manufacturer of aulomobile accossories whose stock is actively traded on the over-the-counter (OrC) markot. During 2012, the Datas-based company experienced sharp increases in both sales and earnings. Bocause of this recont growth, Melissa Jen, the company's treasurer, wants to make sure that available funds are being used to their fullest. Management policy is to maintain the current capital structure proportions of 30% long-term debe. 10% preferred stock, and 60% common stock equity for at least the next 3 years. The firm is in the 40% tax bracket. Star's divisian and product managers have presented several competing investment opportunities to Jen. However, because funds are limited, choices of which projects to accept must be made. Star's current investment opportunities are shown in the table below. c. Answer the following questions while considering Star's current capital structure and your answers to part (b). Be sure to explain your answers. (1) How much long-term debt can Star use before affecting its cost of common stock? The break point is ghen by: BP=wiAFj The maximum amount of financing is 5 (Fonind to the nearest dollari) (2) What is the maximum amount of financing that Star can raise without using the more expensive new common stock? The maximum amount of financhg is (Round to the nearest doliar.) (3) In part (b), why were you not asked to calculate Star's WACC when long-term debt is less than $450,001 and common stock equily is greater than $1,500,000 ? (Select the best choice below.) A. Star would not issue the more expensive new shares while it can still issue preferred stock. B. Star would not issue the less expenshe new shares while it can stili issue lang-term debt. C. Star would not issue the less expensive new shares while it can still issue preferred stock. D. Star would not issue the more expensive new shares while it can still issue bong-term debt. d. Regardless of Star's WhcC, rank the projects acconding to most attractive to least attracthe and explain your ranking procedure. (Solech the best choice below.) A. Projects C, D, 8, F, E and G should be accepted, because each has an IRR greater than the WaCC. These projecis will require $2,900,000 in new fnancing. B. Projects C, D, B. F, and E should be accepted, because each has an IRR greater than the WACC. These pecjects will require $2,900,000 in new financing. C. Projects C, D, B, F, and E should be accepted, because each has an IRR greater than the WACC. These profects will require $2,400,000 in new financing. D. Projects C, D, B, F, and G should be accepted, because each has an IRR greater than the WACC. These projects will require $2,400,000 in new financing. e. Based on the current capital structure and each of the financing scenarics below, detarmine which investment opportunities Star should undertakn. Explain your answers. (1) Long-term debt of $450,000. (Select the best choice below.) A. Financing $450,000 in long-term debt represents total financing of $1,500,000. Take projects C, D and B. B. Financing $450,000 in long-term debt represents total financing of $1,500,000. Take projects C,D and G. C. Financing $450,000 in long-term debt represents total financing of $1,500,000. Take projects C,D and F. D. Financing $450,000 in long-term debt represents total financing of $1,500,000. Take projects C,D and E. (2) Common stock equity of $750,000. (Select the best choice below.) A. Financing $750,000 in common stock equity represents total financing of $1,250,000. Take projects C and A. B. Financing $750,000 in common stock equity represents total financing of $1,250,000. Take projects C and F. C. Financing $750,000 in common stock equity represents total financing of $1,250,000. Take projects C and D. D. Financing $750,000 in common stock equity represents total financing of $1,250,000. Take projects C and B. (3) Common stock equity of $1,500,000. (Select the best choice below.) A. Financing $1,500,000 in common stock equity represents total financing of $2,500,000. Take projects C, D, B, F, and E. B. Financing $1,500,000 in common stock equity represents total financing of $2,500,000. Take projects C, D, B, F, and G. C. Financing $1,500,000 in common stock equity represents total financing of $2,500,000. Take projects C,D,B,F, and A. D. Financing $1,500,000 in common stock equity represents total financing of $2,500,000. Take projects C,D,B and F. (4) Long-term debt of $1,000,000. (Select the best choice below.) A. Financing $1,000,000 in long-term debt represents total financing of $3,333,333. Take projects C, D, B, F, and E. B. Financing $1,000,000 in long-term debt represents total financing of $3,333,333. Take projects C, D, B, F, and G. C. Financing $1,000,000 in long-term debt represents total financing of $3,333,333. Take projects C, D, B, F, and A. D. Financing $1,000,000 in long-term debt represents total financing of $3,333,333. Take projects C, D, B and F