57. On-line Text Co. has four new text publishing products that it must decide on publishing to expand its services. The firm's WACC has been 17%. The projects are of equal risk, Bs of 1.6. The riskfree rate is 7% and the market rate is expected to be 12%. The projects are expected to earn as follows: \begin{tabular}{lll} - Project W: & 14% \\ - Project X: & 18% \\ - Project Y: & 17% \\ & Project Z: & 15% \end{tabular} What projects should be selected and why? 59. The Neptune Company offers network communications systems to computer users. The company is planning a major investment expansion but is unsure of the correct measure of equity capital as it has no traded equity. Your job is to determine the basis of the equity cost. List and explain the steps you will need to take. 47. Slippery Sope Roof's net cash flows are as follows: After year 3 , net cash flows grew at a constant rate of 3%. The weighted average cost of capital is 9%. What ss the value of the firm? A. 1,215,650 B. 1,328,141 C. 1,461,439 D. 1,575,941 E. None of these 135. We routinely assume that investors are risk-averse return-seekers; i.e., they like returns and dislike risk. If so, why do we contend that only systematic risk and not total risk is important