Peter's Audio has a "yield to maturity" on its debt of 7.8%, a cost of equity of 12.4%, and a cost of preferred stock of 8%. The capital structure weights for common equity, preferred stock, of 8%. The common structure weights for common equity, preferred stock, & debt are 47.09%, 22.94%, and 21.97% respectively.

If the tax rate is 34%, what is the weighted average cost of capital (WACC)?

Will you accept an expansion project with an IRR or 9.1% and why?