1. Assume a capital structure where stock is 50% and costs 14%, bonds are 40% and cost 8% and preferred is 10% and costs 11%.
What is the weighted average cost of capital when taxes are 25%___________?
Please show your work
2. A company is planning on conducting a project that will be take place in a building thy bought 10 years ago for $200,000. The building is worth $300,000 today. How do thee change the cash flows, if at all?