You are trying to estimate out how much it costs Walmart to raise capital. The outstanding bonds have a 2.41% yield to maturity. The appropriate tax rate is 15%. The common stock has a current dividend (D0) of 1.98. Dividends are expected to growth by 2% per year and the stock is priced at $151.83.If they use 18% debt financing and 82% common stock financing,what is the weighted average cost of capital?

Using your cost of capital from the previous problem (#11).Which of the following independent project(s) would you choose? Explain why

Project A-IRR=7%

Project B-IRR=5%

Project C-IRR=8%