1. LL Incorporated's currently outstanding 9% coupon bonds have a yield to maturity of 12%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 30%, what is LL's after-tax cost of debt? Round your answer to two decimal places.

2. Summerdahl Resort's common stock is currently trading at $34.00 a share. The stock is expected to pay a dividend of $2.75 a share at the end of the year (D₁ = $2.75), and the dividend is expected to grow at a constant rate of 3% a year. What is the cost of common equity? Round your answer to two decimal places.

3. Booher Book Stores has a beta of 1.2. The yield on a 3-month T-bill is 4.5% and the yield on a 10-year T-bond is 6%. The market risk premium is 5%, and the return on an average stock in the market last year was 11%. What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places.

4. David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on the company's outstanding bonds is 10%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 9.26%. What is the company's cost of equity capital? Round your answer to two decimal places.

5. A project has an initial cost of $63,600, expected net cash inflows of $13,000 per year for 11 years, and a cost of capital of 11%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round your intermediate calculations. Round your answer to the nearest cent.