Saved Apply: Assessment [due Day 7) i Peter Johnson, the CFO of Homer Industries, Inc is trying to determine the Weighted Cost of Capital (WACC) based on two different capital structures under consideration to fund a new project. Assume the company's tax rate is 30%. Tax Rate 30% Component Debt Preferred Stock Common Stock Scenario 1 $4,000,000.00 1,200,000.00 1,000,000.00 $6,200,000.00 Scenario 2 $1,000,000.00 1,500,000.00 3,700,000.00 $6,200,000.00 Cost of Capital 8% 10% 13% Total 1-a. Complete the table below to determine the WACC for each of the two capital structure scenarios. (Enter your answer as a whole percentage rounded to 2 decimal places (e.g. .3555 should be entered as 35.55).) Scenario 1 Weight % Scenario 2 Weight % Tax Rate Scenario 1 Scenario 2 Weighted Cost Weighted Cost Cost of Capital 8% 30% Debt Preferred Stock 10% Common Stock 13% Total 0.00% 0.00% 1-b. Which capital structure shall Mr. Johnson choose to fund the new project? 1-b. Which capital structure shall Mr. Johnson choose to fund the new project? O Scenario 1 O Scenario 2 Prey 1 of 1 RE Next co search a