A firm has the following capital structure: 1. Bonds with marketvalue of $3,000,000 2. Preferred Stock with a market value of$2,000,000 3. Common stock, of which 400,000 shares is outstanding.Presently, each common stock is selling at $30 per share Thepreferred stock price per share is $60 and pays a $5 dividend.Common stock shares sell for $30 and pay a $2 dividend. Dividendsfor common stock are expected to grow by 3%. Bond price is $950,and the bond coupon rate is 6.5%. The bonds mature in 7 years. Thefirm’s tax rate is 38%. The company has $3,500,000 in sales, andexpenses of $1,200,000. The initial investment of $5,500,000 willbe depreciated straight-line over 10 years. The project is expectedto last 10 years. 1. What is the firm’s Weighted Average Cost ofCapital (WACC)? _____________________ (Chapter 13) 2. What is thefirm’s Operating Cash Flow (OCF)? ______________________ (Chapter9) 3. Using the WACC is the NPV, using the WACC (use the answerfrom question 1 above), and OCF (use the answer from question 2above)? ¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬______________________ (Chapter 8) 4. Basedon your answer to question #3, would you accept or reject theproject? Explain why?_______________________________________________________Chapter8