Recall that the equation for the weighted average cost of capital $($WAAC$)$ can be stated as:

WAAC $=(\%of$ debt $)($ After$-$tax cost $of$ debt $)$

$+(\%of$ preferred stock $)($ Cost $of$ preferred stock $)$

$+(\%of$ Common equity $)($ Cost $of$ common equity $)$

Plugging in the relevant values into the formula for WACC yields a WAAC of approximately $\_\_\_\_\_\_\_\_\_\_\_\_\_$Suppose Mullens Corporation is considering three average$-$risk projects with the following costs and rates of return:

Suppose that Mullens will only accept projects with an expected rate of return that exceeds the WAAC.

Which of the following projects will Mullens accept? Check all that apply.

Project $1$

Project $2$

Project $3$