19. Assume that you are a consultant to Rose Inc., and you have been provided with the following data: D₀ = $20.37; P₀ = $335.00; and g = 9.00% (constant). What is the cost of equity from retained earnings based on the DCF approach?

20. Rock Inc. is considering two mutually exclusive projects. Both require an initial investment of $60,000 at t = 0. Project X has an expected life of 2 years with after-tax cash inflows of $29,000 and $38,000 at the end of Years 1 and 2, respectively. In addition, Project X can be repeated at the end of Year 2 with no changes in its cash flows. Project Z has an expected life of 4 years with after-tax inflows of $19,500 per year for 4 years. Each project has a WACC of 9%. Use the replacement chain approach to determine the NPV of the most profitable project.

17. PANSAK Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR?

WACC: 8.00%

Year 0 1 2 3

Cash flows -$15,000 $8,100 $8,500 $10,200