1. Project L costs $65,000, its expected cash inflows are $14,000 per year for 8 years, and its WACC is 13%. What is the project's payback? Round your answer to two decimal places.
2. B24&Co stock has a beta of 1.62, the current risk-free rate is 3.12 percent, and the expected return on the market is 10.62 percent. What is B24&Co's cost of equity?
3. A firm requires an investment of $60,000 and borrows $30,000 at 9%. If the return on equity is 22% and the tax rate is 35%, what is the firm's WACC?
a. 11.1%
b. 13.9%
c. 16.7%
d. 27.9%