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6)Tuttle Enterprises is considering a project that has the following cash flow and WAC data. What is the project's NPV? Note that if a project's

6)Tuttle Enterprises is considering a project that has the following cash flow and WAC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected.

WACC-12%

YEAR 0 1 2 3 4

$-1000 $350 $350 $350. $350

7)Your company, RMU Inc., is considering a new project whose data are shown below. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. What is the project's Year I cash flow? Sales revenues $26.750 Operating costs $13,511 Tax rate 25.0%

8)A stock just paid a dividend of Do = $1.50. The required rate of return is r, = 8.9%, and the constant growth rate is g = 4.0%. What is the current stock price?

9)Assume a dividend of $0.75 expected at end of the year. The required rate of return is r, = 10.5%, and the expected constant growth rate is g = 8.3%. What is the stock's current price?

10)ID, =$1.25, g (which is constant) = 5.5%, and Po = $50, then what is the stock's cost of equity?

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