1. Rocket Co. is considering a project that requires an initial investment of $270,000. The firm will raise the $270,000 in capital by issuing $100.000 of debt at a before-tax cost of 9.6%, $30,000 of preferred stock at a cost of 10.7%, and $140,000 of equity at a cost of 13.5%. The firm faces a tax rate of 25%, what will be the WACC for this project? a. 11.97% b. 13.73% c. 9.04% d. 10.86% 2. SEC has three projects: Project-A has a rate of return of 15%, Project-B has a rate of return of 9%, Project-C has a rate of return of 12.48%. Three projects are equally risky. For SEC, which project is the least preferred? (please use the information above to find the best choice) a. Project A b. Project-B c. Project- C d. None of the above