36. Integrated Septic Services, is manufacturer of septic tanks whose slogan is "we are number 1 in the number 2 business." The firm is expected to pay a $2.50 dividend at year end (D1 = $2.50), the dividend is expected to grow at a constant rate of 5.50% indefinately, and the common stock currently sells for $52.50 a share. The before-tax cost of debt is 7.50%, and the tax rate is 40%. The capital structure consists of 45% debt and 55% common equity. What is the company's WACC if all the equity used is from retained earnings?

37.You have been asked to consider the following set of cash flows (in millions (m)) from a capital budgeting project.

Please find the payback period for the series of cash flows. CF0 = -10m CF1 = 1m CF2 = 2m CF3 = 3m CF4 = 3m CF5 = 3m CF6 = 2m