Question 1:Given information from scramble balance sheet Account payable15,000,000 Total liabilities 5 Total current liabilities (non-interest bearing debt)25,000,000 Retained earnings 30,000,000 Debt: Bond price-, 1,030, interest is paid annually at the rate of 10%. Time to maturity Preferred stocks 5,000,000 55,000,000 Common stock 10,000,000 10 years. Par value 1,000 Preferred stock: The company's preferred stock is selling for $1.15. The par value is $1. Dividend is paid twice per year. Dividend rate is 12%annually. Common stock: The firm's stock sells for $108. The company pays 55% of its earning in dividends and $8 was recently paid. Earnings per share 5 years ago were $10. Earnings are expected to continue to grow at the same annual rate in the future. The par value is $10. Given that the firm's marginal tax rate is 40% 1. Suppose that you don't have enough information to calculate market value, calculate WACC using book value 2. As market value is more appropriate because investor would demand market required rate of return on the market value not the book value, calculate WACC using market value If the internal rate of a proposed project is 10%, should it be accepted