Tower Inc. is in its annual Capital Budgeting review process. To complete this process, Tower Inc. wants to determine its WACC (Part A below) and then set its hurdle rate above its WACC so that new projects are reasonably certain to increase sharehokler wealth. The company has searched for investment opportunities and gathered information for each of the 5 proposals listed below in Part B below. After calculating the WACC, Tower Inc. has decided to use a bundle rate of 11.50% for all proposals being considered. Management has determined that for any project to be accepted, it must first have a Payback Period of less than 5.00 years and must have a positive NPV based on the hurdle rate. Lastly, the company has decided to ration the amount of capital for new projects at a maximum of $1,000,000. NOTE: You must show your work for each calculation to receive credit. Part A 65% 10% 2596 Given the following information, calculate the WACC: Percent of Capital Structure Debt Preferred Stock Common Stock Additional Information: Corporate Tax Rate 34% Dividend, Preferred $8.50 Expected Common Dividend $2.50 Preferred Price $105.00 Growth Rate 7% Bond yield 9.50% Preferred Floatation cost $3.60 Price, Common Stock $75.00