Suppone Mullan Carparation in connidaring three average$-$rink projacta with the follawing conta and rabas of return:

dividend of $D_F=$$$20\mathrm{.}00$ per vear and at $P_F=$$$200\mathrm{.}00$ par whare.

dividend in expected bo grow at a convtart annual rabe of $z=5\mathrm{.}00\%$ per year.

appraximately

of af appreximately

Hint: Aswume no flotation conta.

of approsimabaly

Racal that the equation for the weighted average cont of capital $$WCAAC$]$ can ba ntated an:

WAAC$=(ofof$ dobe $)(After-$dax cout $of$ dene $)$

$+(\frac{?}{?}\%of$ pre ferred stock$)(Coutof$ preferred atack$)$

$+(\frac{?}{?}\%of$ Comsuou eveity$)(Coutof$ comsuou equity$)$

Plugging in the relavant valuen into the farmula for WNCC yialdn a WAAAC of appraximately

Suppone that Mullene will anily accept projectn eith an expected rate of retum that axceadn the WhAC.

Which of the following projacta wil Mullena accapt? Chack an that apply.

Praject $1$

Praject $2$

Praject $3$