$1.$ Sask Inc.$\text{'}$s cost of equity is $10\%.$ The before$-$tax cost of debt is $5\mathrm{.}50\%,$ and the tax rate is $22\%.$ The target capital structure consists of $40\%$ debt and $60\%$ common equity. What is the company$$s WACC if all equity is from retained earnings?

Question $19$Answer

a$.$

$6\mathrm{.}53\%$

b$.$

$7\mathrm{.}72\%$

c$.$

$8\mathrm{.}20\%$

d$.$

$7\mathrm{.}03\%$

$2.$ Flinflon Inc. is considering a project that has the following cash flow and WACC data. What is the project$$s MIRR?

Year $0123$

Cash flows $-1340500480500$

WACC $0\mathrm{.}096$

Question $2$Answer

a$.$

$6\mathrm{.}68\%$

b$.$

$5\mathrm{.}14\%$

c$.$

$5\mathrm{.}91\%$

d$.$

$9\mathrm{.}60\%$