(Cost of equity) MAM just declared a dividend of $3.7 per share of common stock. The current stock price is $37 per share. The dividend is expected to increase at a rate of 4% per year for the future. The beta of its common stock is 1.1 and the market risk premium is 9%. The risk-free rate=5%. According to the dividend growth model approach, the cost of the equity capital is % Ehrmann Data Systems is considering u project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected, WACC 12.7596 Year 0 1 2 3 Cash flows -$1.000 $450 S450 $450 Select one: a 16.7496 b. 12.02% 15.3798 Od 15.22% 12.78% Warr Company is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases it will be rejected. Year 0 1 2 3 Cash flows -S1.510 5400 $400 S400 $400 Select one: e a 2.36% Ob 2.85% Oc2.5296 d 1.8496 Oo. 23196 For a company whose target capital structure calls for 50% debt and 50% common equity, which of the following statements is CORRECTY a Select one: The cost of equity is always equal to or greater than the cost of debt. Ob The cost of retained earnings typically exceeds the cost of now common stock OC. The WACC exceeds the cost of equity, Od The interest rate used to calculate the WACC is the average after-tax cost of all the company's outstanding debt as shown on its balance sheet, e The WACC is calculated on a before-tax basis