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The total book value of the firm's equity is c20 million, and book value per share is €40

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The total book value of the firm's equity is c20 million, and book value per share is €40. The stock has a market-to-book ratio of 2.0. The firm's bonds have a face value of €10 million and sell at a price of 98% of face value. The yield to maturity on the bonds is 8%. The common stock has a beta of 1.15. The Treasury bill rate is 3%, and the market return is estimated at 10% The firm's tax rate is 35% Instructions: 1. Find the firm's WACC (15 points) 2. The firm is considering two Independent projects with an average level of risk. Internal rate of return of Project 1 15 8%. Internal rate of return of Project 2 is 9% Advise the company whether it should accept or reject these projects. (5 points)