PV $ (929.73) 20 yrs PMT $ 120.00 N 20 I 13% Cost of debt after taxes 8% Cost of Preferred Stock $ 20,000,000.00 1447% Kds Common Equity $ 80,000,000.00 Common Divs Cost of Equity 11% T-bond/risk free 3% CAPM 12.00% Retained Earnings av Discounted CF 89% New Common Stock-Cost of Equity 87% Debt $ 100,000,000.00 WACC 8.14% Project Outlay 12% A $ 5,000,000.00 240 mths B $ 5,000,000.00 35% Corp. tax rate C $ 8,000,000.00 D $ 12,000,000.00 E $ 12,000,000.00