Question $1$ : A firm has determined its optimal capital structure which is composed of the following sources and target market value proportions.Debt: The firm can sell a $12-$ year, $$1,000$ par value, $7$ percent bond for $$960.$ A flotation cost of $2$ percent of the face value would be required in addition to the discount of $$40.$Preferred Stock: The firm has determined it can issue preferred stock at $$75$ per share par value. The stock will pay a $$10$ annual dividend. The cost of issuing and selling the stock is $$3$ per share.Common Stock: A firm's common stock is currently selling for $$18$ per share. The dividend expected to be paid at the end of the coming year is $$1\mathrm{.}74.$ Its dividend payments have been growing at a constant rate for the last four years. Four years ago, the dividend was $$1\mathrm{.}50.$ It is expected that to sell, a new common stock issue must be underpriced $$1$ per share in floatation costs. Additionally, the firm's marginal tax rate is $40\%.$Find the WAAC $?$Questions $2$: Source of Capital. Target Market ProportionsLong$-$term debt. $20\%$Preferred stock. $10\%$Common stock equity. $70\%$Evaluate the following projects using the payback method, assuming a rule of $3$ years for payback, then compute NPV and PI assuming that WAAC $=8\%.$Year Project A Project B$0.-10,000.-10,0001.4,000.4,0002.4,000.3,0003.4,000.2,0004.0.1,000,000$