You have following information about the company R.S. Green: The company has 250,000 shares of common stock outstanding at a market price of $28 a share. Next year’s annual dividend is expected to be $1.55 a share. The dividend growth rate is 2%. The company also has 7,500 bonds outstanding with a face value of $1000 per bond. The bonds carry a 7% coupon, pay interest semiannually, and mature in 7.5 years. The bonds are selling at 98% of face value. The corporate tax rate for the company is 34 percent. 1). What is WACC for the company? 2). The company want to raise 5 million in capital, but still maintain its current capital structure. Given that the flotation cost for common stock is 5%, and the floatation cost for bond is 3%, what is the true amount of capital that the company has to raise? 3). The company will invest newly raised capital in a project, which will generate annual cash inflows of 1.2 million for the next 5 years. What are the NPVs of the project before and after adjusted for floatation cost?