The Cost of Capital 1) Company BW has issued $10000 debt withan interest rate of

The Cost of Capital 1) Company BW has issued $10000 debt withan interest rate of 10%. Corporate income tax rate is 34% find theafter-tax cost of debt. 2) Company BW also has issued $10000preferred stock. The face value is $100 coupon rate is 8% andmarket pays $80 for a share. Find the cost of preferred stock. 3)Company BW has 5000 shares outstanding and the price is $40 pershare. People believe this company is twice as risky as the stockmarket. Current T-bill rate is 3% and expected stock market returnthis year is 9%. What is BWs cost of equity? 4) Find the overallcost of capital for BW (WACC). 5) Company BW has the following twoinvestment opportunities (Aand B). Which project is betteraccording to NPV (compare on the same life length basis)? Net CashFlows End of year. Project A. Project B 0. -8000 -6000 1. 500.2500 2. 11000. 3500 3. 3500 4 3000