For questions 17-19 use the following information. XYZ company has 10 year bonds issued six years ago. The bonds have current selling price of 1036.05. They have a quarterly payment of 15.00 The company pays a 35% tax rate. current price of the stock is 34.00. The company has no preferred stock and is comprised of 40% debt. The company's dividends have a growth rate of 2% and their next dividend will be 2.72. The What is the cost of Equity? A. .08 B. 10% What is the cost of Debt? 17. E. None of the above D 4.75% 18. A. 1.5% C. 12.5% E. None of the above 19. What was the interest rate when the bond was issued? v E None of the above 3.7% 8% C. 5 A. B, 2% D. 6.5% Questions 20 and 21 use the following facts: Assume XYZ Company is considering a project where capital costs will be $1,200,000.00 with a salvage value of 100,000. The project will require 150,000.00 in working capital. Cash flows will be 313,000.00 the first year 425,000.00 the second year and 675,000.00 the third year this investment is of average risk for XYZ and the wACC is 7%, Not considering taxes. 20. What is the NPV -135,264.00 B. 53,634.32 c. 68, 810.00 D. 213,000.00E. 218,810.00 21. If the tax rate 35% what would the NPV be? A. 28,570.00 B. 40,240.0082,204.32 D -163,834.00 E. 67,794.00 22. If a com pany has an IRR of 7% and a profitability index of I. The project has a lifespan of 3 Years and cash flows each year are 125,000.00 what are the initial costs? A 325,000-350,000 c.350,000-375,000 E. none of the above B. 1 D. 0