Company Z has 50,000 shares of common stock outstanding that sells for $10 per share, and its cost of common equity is 12%. The company also has 400 bonds outstanding that sell at par ($1000) and make semi-annual coupon payments of $30. Preferred stock outstanding for the company sells at $25 per share, has a $2.50 annual dividend, and there are 4000 shares outstanding. Ignoring taxes, what is the companys WACC?

options:

	a) 8.9%
	b) 8.0%
	c) 9.4%
	d) 5.5%
	e) 11.6%

A project has an initial cash outflow of $55,000, total cash flow in year 1 of $22,000, with total cash flows increasing by 5% in years 2 and 3. What is the projects Internal Rate of Return?

options:

	14.4%
	10.0%
	12.3%
	8.9%
	9.7%