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WACC-Assignment.(Week-11)- You recently went to work for CTC Components Company, a-supplier of auto repair parts used. in the after-market with products from-Daimler AG, Ford, Toyota, and-other automakers. Your boss, the chief financial officer (CFO), has just handed you the estimated cash flows of a. proposed project. Cost of the project: $180,000 I CTC'sassets are $750 million, financed through bank loans, bonds, preferred stocks, and common stocks. The tax rate is 20 percent. The amounts are as follows: 1 ? Bankloans: $100 million borrowed at 6% Bonds: $280 million, paying 7% coupon with semi-annual payments, and maturity of 10 years. CTC sold its $1,000 par-value bonds for $1070 and had to incur a $70 flotation cost per bond. Preferred Stocks: $120 million, paying $20 dividends per share, CTC sold its preferred shares for $220 and had to incur a $20/ share flotation cost. 4 Common Stocks: $250 million, beta is 2 , the risk-free rate is 2 percent, and the market rate is 7%. CTC's assets are $750 million, financed through bank loans, bonds, preferred-stocks, and common stocks. The tax rate is 20 percent. The amounts are as follows:- Bank:loans: $100 million borrowed at 6% II Bonds: $280 million, paying 7% coupon with -semi-annual payments, and maturity-of 10 years. CTC sold its $1,000 par-value bonds for $1070 and had to incur a $70 flotation cost per bond. Preferred.Stocks: $120 million, paying $20 dividends per share. CTC sold its preferred shares for$220 and had to incur a $20/ share flotation cost. - Common Stocks: $250 million, beta is 2 , the risk-free rate is 2 percent, and the market rate is 7%.41 a) What is the after-tax cost of the loans? -T b) What is the after-tax cost of the bonds? - .1. c) What is the after-tax cost of the preferred stocks? In d) What is the after-tax-cost of the common stocks?-1 e) Calculate the cost of capital. Please show -your work-precisely by indicating each component and weight. f) Calculate the NPV,IRR, and payback period of the project. Use the cost of capital you found in " e" " when calculating the NPV and IRR. Should you accept or reject the project? Why

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