ABC, Inc, is looking at raising additional capital for a future projet The projget ts epected to provide a return on investment of 13%. In order for ABC, Inc. to determine whether this propd is worth investing in, it must first determine the cost of the capital it will use to finance the project. (20 total points) capital for a future project.The project is expectied to The firm's current stock price is $45 and it has 4 milion shares of irm also has weights of each capital component.(2 points) s $30 million of preferred stock and $70 million of debt. Calculate the b. The firm is looking at issuing a new 30-year bond that pays an annual a flotation cost of 2%. The bond is expected to sell at its par tax rate is 40%. Calculate the ATrt. (4 points) value of $1,000. The firm's The firm will have to pay the underwriter a 10% flotation cost for the new equity it will raise. The firm just paid out a dividend of S422 with an expected growth rate of 45. Calculate the re. (4 points) c. The firm expects its preferred stocks to sell for $112.55. The par value of the preferred stock will be $100 with a 12% annual dividend. The flotation cost that will be paid to the underwriter will be 4%. Calculate the rps. (4 Points) d. Assuming that the firm's current market value is their target capital structure, what is the firm's WACC? (4 points) e. f. Should the firm take on this investment based on the cost of the capital that it will use to fund the project? Why? (2 points)