A Company's last dividend was $1.35. Its dividend growth rate is expected to be constant at 6.0% forever and the stock price is $50. The flotation cost on any new stock issue will be 10%. The company's tax rate is 40%. What is cost of retained earnings for this company? O 9.58% O 9.98% O 8.18% 09.18% O 8.86% You are considering a new project that will cost $750,000. The project is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $250,000 in year three, and $280,000 in year four. Your required rate of return is 8%. What is the discounted payback period of the project? O 2.08 years O 2.54 years O 2.74 years O 2.98 years O 2.31 years Which of the following statements is CORRECT? When calculating the cost of preferred stock, a company needs to adjust for taxes, because preferred stock dividends are tax deductible. If a company's tax rate increases but the YTM of its non-callable bonds remains the same, the after-tax cost of its debt will fall. Since the money is readily available, the after-tax cost of retained earnings is usually much lower than the after-tax cost of debt. All else equal, an increase in a company's stock price will increase its cost of retained earnings. O All else equal, an increase in a company's stock price will increase its cost of new common equity