111. A proposed project lasts three years and has an initial investment of $200,000. The after-tax cash flows are estimated at $60,000 for year 1, $120,000 for year 2, and $135,000 for year 3. The firm has a target debt/equity ratio of 1.2. The firm's cost of equity is 14% and its cost of debt is 9%. The tax rate is 34%. What is the NPV of this project? A. -$12,370 B. $13,687 C. $37,723 D. $46,120 E. $57,185 168.

Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 %. The stock is currently selling for $12 a share. The overall stock market has an 11 % rate of return and a risk premium of 8 %. What is the expected rate of return on Daniel's Enterprises stock? A. 10.00 % B. 15.85 % C. 16.67 % D. 18.84 % E. 19.06 % 184.

The common stock of a firm is currently priced at $53 a share. The company paid $1.40 in common dividends last year and expects to increase this amount by 3% annually. The stock has a beta of 1.40, which is about equal to its industry average. Given this information, what is the cost of equity financing? A. 3.81% B. 5.64% C. 5.72% D. 6.70% E. 8.01%