D Question 52 1 pts Wendover Windmills' COO is considering a new project that would involve installing the company's product in a remote Northern Saskatchewan location, close to Buffalo Narrows. To complete the project, $165 million would be required at start up. Flotation costs are expected to be 8% for equity and 2.5% for debt. If the project is to be financed 60% with equity and 40% with debt, how much cash must the firm raise in order to finance the project? O $142.2 million O $175.2 million O $161.7 million O $128.6 million $171.6 million U Question 53 1 pts Zhao Sun, founder of Sun Enterprises, has discovered an interesting investment opportunity in the local real estate market. Zhao has done a lot of research and has discovered all sorts of interesting things about the potential project, but he still doesn't know what the price should be as in "how much should he invest? Zhao is confident that if he invests, the project will generate perpetual cash flows of $15,000 per year, beginning next year. The project has the same risk as the Sun Enterprise's overall operations and must be financed externally. Equity costs 14% and debt costs 4% on an after-tax basis. The firm's D/E ratio is 0.8. What is the most the firm can pay for the project and still earn its required return? e $164,000 O $112.000 O $138,000 $199.000 O $157.000 Question 54 1 pts The Zany Corporation has paid annual dividends of $.80, $.92. $.98, $1.04, and $1.09 over the past five years respectively. What is the average dividend growth rate? 0 7.33% O 8.11% 6.84 % 7.81 % 6.52 % Question 55 1 pts The pure play approach: Assigns a WACC to a project dependent upon the division of the firm which controls the project. O Utilizes the WACC of Firm B to determine the cost of capital for a project under consideration by Firm A. Assigns a unique WACC to each project by adjusting the company's WACC upward or downward in response to the project's level of risk. Applies the firm's weighted average cost of capital (WACC) to only the incremental cash flows of a proposed project Randomly selects a WACC based purely on management's opinion of the risk involved