Please explain in detail(Please don't use Excel to solve) show work:

The Winter Textile Company has the following capital structure, which is considered to be optimal:

a. Find the break-points in the MCC schedule. b. Determine the component costs of capital for each capital structure component. c. Calculate the weighted average cost of capital in the interval between each break in the MCC schedule. d. Calculate the IRR for Projects A, B, C, D, and E. e. Construct a graph showing the MCC and IOS schedules. f. Which projects should Winter Textile accept? g. What are Winter Textiles marginal cost of capital and optimal capital budget?

25% 15 Debt Preferred stock Common equity Total capital 60 100% Winter Textles's expected net income this year is $18,000; its established dividend payout ratio is 35%; its federal-plus-state tax rate is 40%; and investors expect earnings and dividends to grow at a constant rate of 8% in the future. Winter Textile is expected to pay a dividend of $3.00 per share in the upcoming year, and its stock currently sells at a price of $70 per share . Winter Textile can obtain new capital as indicated below: Debt: Up to $3,000 of debt can be sold at an interest rate of 11%; debt in the range of $3,001 to $6,000 must carry an interest rate of 13%; and all debt over $6,000 will have an interest of 15%. Preferred: New preferred could be sold at a price of $120 per share, with a dividend of $10. Floatation costs of $6 per share would be incurred for up to $4,000 of preferred, while these costs would rise to $12, on all preferred over $4,000. Common: New common stock would have a floatation cost of 10% for up to $7,000 of stock and 15% for all common over $7,000. . The following are the 5 projects (all of them divisible) under consideration by Winter Textile: Project Project Life (Years) 7 B Initial Cost $5,000 5,000 5,000 10,000 10,000 Annual after-tax CF $1,095.60 1,577.21 1,085.09 1,894.74 2,713.92 D E 10 o 25% 15 Debt Preferred stock Common equity Total capital 60 100% Winter Textles's expected net income this year is $18,000; its established dividend payout ratio is 35%; its federal-plus-state tax rate is 40%; and investors expect earnings and dividends to grow at a constant rate of 8% in the future. Winter Textile is expected to pay a dividend of $3.00 per share in the upcoming year, and its stock currently sells at a price of $70 per share . Winter Textile can obtain new capital as indicated below: Debt: Up to $3,000 of debt can be sold at an interest rate of 11%; debt in the range of $3,001 to $6,000 must carry an interest rate of 13%; and all debt over $6,000 will have an interest of 15%. Preferred: New preferred could be sold at a price of $120 per share, with a dividend of $10. Floatation costs of $6 per share would be incurred for up to $4,000 of preferred, while these costs would rise to $12, on all preferred over $4,000. Common: New common stock would have a floatation cost of 10% for up to $7,000 of stock and 15% for all common over $7,000. . The following are the 5 projects (all of them divisible) under consideration by Winter Textile: Project Project Life (Years) 7 B Initial Cost $5,000 5,000 5,000 10,000 10,000 Annual after-tax CF $1,095.60 1,577.21 1,085.09 1,894.74 2,713.92 D E 10 o