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Please provide clear and organized answers 3. The Big Easy Inc. target capital structure calls for 30% debt, 10% preferred stock, and 60% common equity.

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3. The Big Easy Inc. target capital structure calls for 30% debt, 10% preferred stock, and 60% common equity. It has outstanding 25-year noncallable bonds with a face value of $1,000, a 9% semi-annual coupon, and a market price of $1,187.66. The tax rate is 40%. The company's preferred stock currently trades at $65 and pays a $5 annual dividend per share. The company's common stock, on the other hand, currently trades at $35 a share and just paid $4.56 annual dividend per share. The dividend is expected to grow at a constant rate of 3% a year. In addition, the risk- free rate is 6%, the average return on the market is 10%, and the firm's beta is 1.5. Given the following information, answer the following questions: .) What is the flotation cost adjustment? What is the cost of external equity? . Calculate the WACC if the common equity comes from retained earnings. n. Calculate the WACC if the common equity comes from new stocks. If the company is considering the following capital budgeting projects: Project Size Rate of Return $1M 13% B $2M 12.5% $2M 12% D $2M 11.9% E $1M 11% F $1M 10.56% G $1M 10% Which set of projects should be accepted

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