version A 26. A firm is considering the following projects 16% 12% WACC 14% 14% The risk free rate is 2%, and the expected market risk premium is 8% The firm should A. accept project A, accept project B B. accept project A, reject project B C. reject project A, accept project B D. reject project A, reject project HB E. The answer cannot be determined without more information l b) You are given the following information concerming Around Town Tours: Common stock: 265,000 shares of common stock selling for $76 per share. The stock has a beta of 0.92 and will a dividend of $248 next year. The dividend is expected to grow by 4 percent per year indefinitely: The risk free rate is 4.5%, and the market nsk premium is 8.7% Preferred stock: 7,500 shares of preferred stock selling at $88 per share and paying a s6 dividend per share Debt: 8,500 bonds outstanding, with 7.1 percent semiannual coupon rate, $1000 par value, 14 years to maturity, selling for 102.6 percent of par The corporate tax rate is 34 percent Round your answers to two significant digits