The WACC for a company is 9.25

1. In terms of the company raising funds, what does 9.25 mean?

2. Based on this information, when evaluating a capital budgeting project, what should the company's minimum required rate of return/discount rate be?

Please show work

Excess Return Period (yrs) 10 Depreciation Rate (% of Rev) 3.14 1430.5 6.8 Revenues ($mil). Investment Rate (% of Rev). 20 11.72 Growth Rate (%). Working Capital (% of Rev). 27.75 781.6 Net Oper. Profit Margin (%). Short-Term Assets ($mil). 28.832 85.9 Tax Rate (2) Short-Term Liab. ($mil). Stock Price ($). 63.29 Equity Risk Premium (%. 3 144.6 1.4175 Shares Outstanding (mil). Company Beta 5 0 10-Yr Treasury Yield (%). Value Debt Out. ($mil). 1.5 0 Bond Spread Treasury_(%). Value Pref. Stock Out. ($mil). 7.5 9.25 Preferred Stock Yield (%) Company WACC (%)