Question 25 A firm is considering a new project which would be similar in terms of risk to its existin projects. The firm needs a discount rate for evaluation purposes. The firm has enough cash o hand to provide the necessary equity financing for the project. Also, the firm has 1,00. common shares outstanding with a current market price of GHe11 per share. Next veare dividend is expected to be GHfl per share and the firm estimates dividends will grow at5% per year for the next several years. The firm also has 150,000 preferred with a current market price of GHe10 per share. Dividend of GHeo.9 preferred stock. The firm has a total of GH#10,000,000 in debt outstanding. The debt stock currently valued at of GH9,500,000. The yield on the debt is 8%. The firm's tax rate is 20% The proje expected to generate GHe100,000 annually in perpetuity. Required: shares outstanding per share is paid o ct requires an initial capital investment of GHe500,000. However, the project Calculate the WACC for this project? Evaluate the project using NPV i. ii. Page 12 of 22