Question: c2 QUESTION 2 The capital structure for the GEN-Z Berhad is provided here: Capital structure RM000 Bond 4,000 Preferred Stock 3,000 Common Stock 13,000 The

c2 QUESTION 2

The capital structure for the GEN-Z Berhad is provided here:

Capital structure

RM000

Bond

4,000

Preferred Stock

3,000

Common Stock

13,000

  1. The firm is in a 25% tax bracket and plans to maintain its capital structure in the future. If the firm has a 7% before-tax cost debt, a 12% cost of preferred stock, and a 16% cost of common stock, what is the firms weighted average cost of capital (WACC)?

  1. Based on your answer in a), if the company has an opportunity to invest in new project with expected return of 22%, should the company invest in the new project? Why?

please give all answer don't give hand write , thank you

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