i would like to know how to get an answer of problem 1.

Problem #1 (6 Marks) Calculate the WACC for a firm given the following information: D/E ratio = 1.6 Rd = 6% Re=10% Tax rate = 35% Problem #2 (10 Marks) Below is a partial balance sheet for Thompson Transportation. The existing pref currently selling for $25 per share. The firm can sell new $100 par value preferre 12% annual dividend. The market price is expected to be $95 per share. Liabilities & Shareholders' Equity Bonds, coupon =9%, paid semi-annually (maturity 15 years, $1,000 face value) $10,000,000 Preferred Stock (Par value $20 per share) 2,000,000 Common Stock (1,000,000 shares outstanding) 10,000,000 Retained Earnings 28,000,000