Question 2 please

Common stock: 575,000 shares outstanding, selling for $64 per share; the beta is 1.09. Preferred 35,000 shares of 2.8 percent preferred stock outstanding, currently stock: selling for $65 per share. Market: 7 percent market risk premium and 3.2 percent risk-free rate. 2. SML and WACC [L01] An all-equity firm is considering the following projects: ect Beta 85 92 1.09 11.35 8.9% 110.8% 12.8% | 13.3% The T-bill rate is 4 percent, and the expected return on the market is 11 percent. a. Which projects have a higher expected return than the firm's 1 1 percent cost of capital? b. Which projects should be accepted? c. Which projects would be incorreetly accepted or rejected if the firm's overall cost of capital were used as a hurdle rate? 3. Bronco, Inc, imposes a payback cutoff of three years for its international investment projects. If the company has the following two pr Year Cash Flow () Cash Flow (B) 75 10