urgent

Cuestion 4. 10 marks) Attraction ltd. is currently evaluating its options for raising financing for a new project. Its stock currently sills for $27 per share and its last dividend was $2.20 per share. It expects its earnings and dividends to continue to grow at a constant rate of 7% and its current tax rate is 30%. Attraction believes it can raise new debtct an interest rate of 11%, and preferred stock offering a dividend of $6 per share can be sold for $45 per thare. Attraction's capital structure consists of 60% debt, 35% equity, and 5% preferred stock. (3) Determine the cost of each capital structure component (3 marks (15) Calculate the weighted average cost of capital (WACC) (5 marks) The company is considering the following investment opportunities. If the projects are independent, which should it choose (2 marks) Projec Investment Rate of Return (%) A 2,000,000 14.35 1.350,000 11:05 1.550,000 13.62 e C C 10.95 2.500.000 1.750,000 E 9.00