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A) You are evaluating a project with the following expected cash flows: an initial investment of $13 million, followed by cash flows of $6, $10
A)
You are evaluating a project with the following expected cash flows: an initial investment of $13 million, followed by cash flows of $6, $10 and $17 million in years 1, 2 and 3, respectively. If the company's discount rate is 6%, what is this projects NPV?
B)
Assume a share of preferred stock offers an annual dividend of $2.50, and is currently selling for $57. What is this firm's cost of preferred stock?
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