Do not use excel and please show work step by step

1. Assume the following capital structure for Tesla, Inc.:

Debt30%

Preferred stock25%

Common equity45%

The following facts are also provided:

Bond yield to maturity 7%

Corporate tax rate 25%

Dividend, preferred stock..$5.25

Price, preferred stock $125.00

Floatation Cost, preferred stock $4.00

Dividend, common stock$3.25

Price, common stock.$40.00

Growth rate, common stock 10%

a) Compute the weighted average cost of capital.

2. Assume a corporation has earnings before depreciation and taxes of $210,000, deprecation of $50,000, and a 30 percent tax bracket. Compute its cash flow using the following format.

Earnings before depreciation and taxes

Depreciation

Earnings before taxes

Taxes @ 30%

Earnings after taxes

Depreciation

Cash flow

3.Assume a $350,000 investment and the following cash flows for two products:

Year	Product A	Product B
1	$80,000	$130,000
2	120,000	90,000
3	75,000	65,000
4	50,000	50,000
5	35,000	25,000

Which alternatives would you select under the payback method?