Need help with proper steps and explanation please!

Problem #$2(26$ marks$)$

Fritz Foods Corporation, a premium pet food manufacturer, would like you to calculate the weighted average cost of capital as

they are considering a new expansion project. You have been provided with the firm's most recent financial statements as

well as the following additional information:

Fritz Foods Corporation

Debt:

The bonds of Fritz Foods are currently trading at a quoted price of $98\mathrm{.}6.$

Preferred stock:

The shares of preferred stock of Fritz Foods are currently trading at $$26$ per share.

New preferred shares would be issued with $$18$ par and would yield the same as existing preferred stock.

Common stock:

Common shares are currently trading at $$20$ per share. The five$-$year average beta of Fritz Foods is $1\mathrm{.}52.$ Treasury bills are

currently providing a $2\mathrm{.}2\%$ annual return. The expected rate of return in the market is $9\%.$ Fritz Foods effective tax rate is $30\%.$

a$)$ Estimate Fritz Foods before tax cost of debt $(5$ marks$)$

b$)$ Estimate Fritz Foods cost of preferred shares $(2$ marks$)$

c$)$ Estimate Fritz Foods cost of common equity $(2$ marks$)$

d$)$ Calculate Fritz Foods weighted average cost of capital $($WACC$)(6$ marks$)$

e$)$ You estimate the flotation costs for raising new capital are $3\%,5\%,$ and $10\%$ for bonds, preferred stock, and common

stock, respectively. If Fritz Food$$s needs $$15,000,000$ new capital $($as internal funds are insufficient$)$ for financing an

expansion project without changing Fritz Foods existing capital structure, what is the estimate of the dollar amount of

flotation costs for Fritz Foods? $(3$ marks$)$

f$)$ The $$15$ million expansion project $($equipment purchases$)$ Fritz Foods is evaluating will not alter the risk of the firm. The

project will increase the company$$s before$-$tax cash flows by $$3,750,000$ per year for the next $6$ years. The PV of the CCA

tax shield is $$2,475,000$ and Fritz expects to sell the equipment at the end of the $6-$year project resulting in a PV salvage

value of $$1\mathrm{.}14$ million. Based on a NPV analysis, what should be your recommendation? $(8$ marks