Use the following to answer question 11 MCCIOS Schedule Stone Wood Preducts 19.00% Project D 17.00% 1600% 15.00% 14.00% 13.00% 12.00% 1100% SO $500 $1,000 $1,500 $2.000 $2.500 $3,000 3,500 54 000 $4.500 Capital Budget Size (3000s) 11. The managers of Stone Woods Products are considering several investment opportunities for the upcoming year and have asked you to recommend which of the four projects the firm should undertake. After doing the necessary calculations, you have generated an MCCOS schedule. Using this information, which projects will you recommend management adopt for the next year? A) A B) D C) A and D D) A, D and C E) All of the projects Use the following to answer questions 12-13. ATk-, 696; k,-7%; k,-10% Total assets Total debt $500,000 - 200,000 Total common stock 200,000 Total preferred stock100,000 12. Calculate the WACC: A)0.7% B) 7.8% C) 7.2% D)7% 13. If the firm above decided to change its capital structure and finance itself completely with debt, calculate the WACC from the above information: A) 6% B) 0.06% C) 7.8% D) cannot be determined given this information 14. A firm's before tax cost of debt on any new issue is 996, the cost to issue new preferred stock is 10%. Can this pricing exist? A) Yes B) No C) Not enough informatiorn