Please help me with Part C and Part D. Part B is already answered but I included the answers incase they are needed for the other parts.

Part B:

Suppose that Smith Company is considering a new project. They are trying to determine the required rate of return for their debt and equity holders. See the information below:

• A 7.5% percent annual coupon bond with 20 years to maturity, selling for 104 percent of par. The bonds make semiannual payments. What is the before-tax cost of debt? 7.12%
• If the tax rate is 40%, what is the after-tax cost of debt? 4.27%.
• The firm's beta is 1.2. The risk-free rate is 4.0% and the expected market return is 9%. What is the cost of equity using CAPM? 10.0%

Part C: WACC and Capital Budgeting

• Calculate the firm's WACC (using 2018 numbers). (You will need to collect information on the long-term debt and common stock equity from the Balance Sheet. The firm has no preferred stock).
• Use the WACC to calculate NPV and evaluate IRR for proposed capital budgeting projects. Assume the projects are mutually exclusive and the firm has the money available to fund the project.

Part D: Analysis

• You must offer suggestions to a senior financial manager and CFO on the proposed projects. Be sure to include a discussion of external funding and where it should come from if necessary and which project the firm should undertake.

	12/31/2018	12/31/2017	12/31/2016	12/31/2015
Current Assets
Cash And Cash Equivalents	8,719,000	10,607,000	9,157,000	9,095,000
Short Term Investments	270,000	8,897,000	6,966,000	2,912,000
Net Receivables	7,140,000	7,021,000	6,693,000	6,436,000
Inventory	3,126,000	2,944,000	2,722,000	2,719,000
Other Current Assets	2,042,000	43,000	31,000	730,000
Total Current Assets	21,297,000	29,512,000	25,569,000	21,892,000
Long Term Investments	2,407,000	2,039,000	1,949,000	2,310,000
Property Plant and Equipment	17,587,000	17,237,000	16,590,000	16,316,000
Goodwill	14,806,000	14,741,000	14,429,000	14,176,000
Intangible Assets	15,823,000	13,835,000	13,432,000	13,080,000
Other Assets	5,122,000	910,000	635,000	749,000
Total Assets	77,042,000	78,274,000	72,604,000	68,523,000
Current Liabilities
Accounts Payable	7,211,000	6,724,000	6,157,000	5,545,000
Short/Current Long Term Debt	3,951,000	4,017,000	4,400,000	3,108,000
Other Current Liabilities	6,601,000	4,112,000	3,870,000	3,882,000
Total Current Liabilities	17,763,000	14,853,000	14,427,000	12,535,000
Long Term Debt	28,293,000	33,793,000	30,052,000	29,591,000
Other Liabilities	12,611,000	14,522,000	11,102,000	10,466,000
Total Liabilities	58,667,000	63,168,000	55,581,000	52,592,000
Stockholders' Equity
Total Stockholder Equity	18,375,000	15,106,000	17,023,000	15,931,000