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Sos course RICe CFO ef your company has The curent stock price in $21 and value of price of preferred stock is $12 each Adviend

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course RICe CFO ef your company has The curent stock price in $21 and value of price of preferred stock is $12 each Adviend of S2 2 share has jst been paid The expected growth rate of dividends is 6%. the market value of bond is $1110 (par $1000,. The market company pays corporation tax at the rate of 30% a) What is the capital structure of your company using market b) What are the costs of the various sources of finance? weights? (7.5 pts) 15 pts) c)Calculate the weighted average cost of capital (WACC) for your company. (7.5 pts) d) Use financial calculator and show your inputs. Question 2 Using the WACC obtained from your calculations in Question 2 (or a composite WACC of 13%). appraise the company's proposed investments in the two projects below based on cash flows only and decision rules only Ignore all other factors Year of School Assorted School -600,000 100,000 200,000 250,000 300,000 -600,000 250,000 250,000 150,000 100,000 2 1) Which project should the company invest in if a) Payback period method is used and target period is 3 years b) NPV method is used c) IRR method is used (10 pts) (10 pts) (10 pts) (5 pts) d) How much capital should your company budget? Payback Period NPV IRR School Uniform School Supplies I recommend

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