Preferred stock 15% common equity .6096 100 % 0%, it 9% in ice o ome this year is $34,285.72, its established dividend payout ratio is vidend of $3.60 per share last year, and its stock currently sells at a pr El's expected net tax rate is 40% and invest ors expect earnings and dividends to grow at a constant rate o per share. LEI can obtain new capital in the following ways: Preferred: New prefer per share. . Debt: Debt can be sold at an interest rate of 12%. erred: New preferred stock with a dividend of $11 can be sold to the public at a p i. Determine the cost of each capital structure component. li. Calculate the Weighted average cost of capital (WACC) ii. LEI has the following investment opportunities (independent projects) that are typical risk projects for the firm: PROJECT COST AT t-o A $10,000 20,000 10,000 D 20,000 E 10,000 RATE OF RETURN 17.4% 16.0% 14.2% 14.2% 12.0% Which projects should LEI accept? Why? 8.878-0.6k 13%. Debt Preferred stock Common equity60 25% 15% 100 % LEI's expected net income this year is $34,285.72, its establisheaconstant rata price payout ratio is 30%, its tax rate is 40% and invest of 9% in the ors expect earnings and dividends to grow at a constant rate price of $54 future. LEI paid a dividend of $3.60 60 per share last year, and its stock currently sells at a pr year, a per share. LEI can obtain new capital in the following ways of $95 stock with a dividend of $11 can be sold to the public at a price per share. . Debt: Debt can be sold at an interest rate of 12%. i. Determine the cost of each capital structure component. ii. Calculate the Weighted average cost of capital (WACC). iii, LEI has the following i risk projects for the firm: PROJECT COST AT t-0 A $10,000 B 20,000 nvestment opportunities (independent projects) that are typical ave RATE OF RETURN 17.4% 16.0% 14.2% 14.2% 12.0% 10,000 D 20,000 E 10,000 Which projects should LEl accept? Why? a. Component costs are as follows: Common