17. A project has an expected risky cash flow of $200 at the end of year one. The risk- free rate is 6% and the project's cost of capital is 21%. Calculate the project's certainty equivalent cash flow for year one. A) $164.29 B) $175.21 C) $198.20 D) $228.30 18. H&W Co. has the following data: Cost of debt (rd) is 6.0%; Cost of equity (re) is 12.1%; Marginal tax rate is 35%. The company has 50% debt and 50% equity. Calculate the after-tax weighted average cost of capital (WACC): A) 5.9% B) 7.1% C) 8.0% D) 9.0% 26. John holds 100 shares of AMB New Zealand. AMB just announced a pre-tax annual profit of $10 per share. The company maintains an 80% dividend payout policy and faces a corporate tax rate of 28%. John's marginal personal tax rate is 30%. Assume all dividends paid by AMB are fully imputed under the imputation tax system of New Zealand, how much extra tax John needs to pay at the personal level on dividends he received from AMB? A) $48 B) $20 C) $16 D) $0 34. Chandler Communications has an expected capital budget of $5,000,000 for next year. The company's target capital structure is 70% debt and 30% equity. The company's net income is $4,500,000. If the company follows a residual distribution policy and all distributions to shareholders are in the form of cash dividends, what portion of its net income should it pay out as dividends this year? A) 30% B) 40% C) 67% D) 70%