1. Project L costs $50,000, its expected cash inflows are $15,000 per year for 8 years, and its WACC is 12%. What is the project's MIRR? Round your answer to two decimal places. Do not round your intermediate calculations.
2. Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D0 = $1.20; P0 = $15.00; g = 5.00% (constant); and F = 6.00%. What is the cost of equity raised by selling new common stock? 13.45% 13.87% 13.53% 13.94% 13.13%
3. Yasheen Company expects to earn $3.50 per share during the current year, its expected dividend payout ratio is 66%, its expected constant dividend growth rate is 6.0%, and its common stock currently sells for $32.50 per share. New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred. What would be the cost of equity from new common stock? a. 13.37% b. 13.70% c. 13.98% d. 13.74% e. 13.48%