Do not use excel please Type 1C: Here is a book balance sheet for Ink and Press Co.Figures are in millions.AssetsLiabilities and Shareholders' EquityAssets (book value)$80Debt$30Equity$50$80$80Unfortunately, the company has fallen on hard times.The 5 million shares are trading for only $4 apiece, and the market value of its debt securities is 40% belowthe face (book) value.Suppose shareholders now demand a 20% expected rate of return.The bonds are now yielding 14%.a.What is the firm' weighted-average cost of capital if the firm's tax rate is 21%?b.If the company considers a normal project whose risk is about the same as the company's risk with an internal rate of return of 13%, should it accept the project?Why or why not?

Given, Expected return on stock is 20% Bond yield rate is 14% Tax rate is 21%

Assets Liabilities and Shareholders' Equity Asseta (book value) $80 Debt $30 Equity $50 $80 $80 Unfortunately, the company has fallen on hard times. The 5 million shares are trading for only $4 apiece, and the market value of its debt securities is 404 below the face (book) value. Suppose shareholders now demand a 204 expected rate of return. The bonds are now yielding 144. a. What is the firm's weighted-average cost of capital if the firm's tax rate is 214? b.If the company considers a normal project whose risk is about the same as the company's risk with an internal rate of return of 134, should it accept the project? Why or why not?