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Question 4Acme Publishing has the following (independent) investmentopportunities:ProjectInitial investmentIRRA$13 00016%B$17 00014%C$10 00010%The optimal capital structure calls for financing all projectswith 60 per cent ordinary shares and 40 per cent debt. Thefollowing information applies to the future financial position ofAcme Publishing:The most recent dividend (DO) was $0.35The growth rate of earnings and dividends is 6 per centThe current price of shares is $4.60If new shares are issued, a flotation cost of 10% will beincurredThe company can borrow up to $10,000 from its bank at aninterest rate of 12%. For any amount of debt above $10,000, theinterest rate is 14%The company’s dividend pay out ratio is 40%The company is in a 30% tax bracketAcme Publishing earned $35,000 last year before taxRequiredIn which of the projects (if any) should Acme Publishing invest,and what is its capital budget and weighted average cost of capital(WACC)?