1. ABC Company is considering a project that has the following cash flows and 10% cost of capital.

Year 0 1 2 3 Cash flows -$1,037 $450 $459 $554

What is the project's MIRR? Round your answer to two decimal places of %

2.

You are in charge of estimating you company's weighted average cost of capital. The company's target capital structure is 30% debt, 20% preferred stock, and 50% commor stock. Its current before-tax cost of debt is 11.9%, and flotation cost for debt can be ignored. Its preferred stock has a before-tax cost of 12.6%. The company has just paic a common stock dividend (Do) of $2.89 and expects to have a constant dividend growth rate of 6%. Its common stock currently sells for $30 per share. Flotation cost on new common stock would total 9.3%. Its tax rate is 40%. Compute (a) the company's cost of newly issued common stock (using the Dividend Growth Model) and (b) the company's WACC when the newly issued common stock is used as the common equity component. Round your answers to two decimal places of %, but ignore \% in your answer, e.g., xx.xx. (Hint: Measure the cost of common stock first and then use the WACC formula) Cost of common stock = %; Company WACC = %