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Incorrect Question 6 0/3 pts You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: Dividend

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Incorrect Question 6 0/3 pts You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: Dividend at the end of the year D1 = $1.71; The stock is currently trading at a price of $42.50, and the dividends are expected to grow at a growth rate of 2% (constant); The flotation costs for issuing the shares of common stock is 5.00% of the proceeds. The cost of equity raised by selling new common stock is % (show 2 decimals, e.g. 9.99%). 10.94 Incorrect Question 7 0/3 pts Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: Risk free rate = 3.2%; The market risk premium is estimated to be 4%; and the company's beta = 1.2. Based on the CAPM approach, the cost of equity from retained earnings is %. Show 2 decimals. E.g. 9.99% 8.1 Incorrect Question 13 0/3 pts Data for Fun 4 All, Inc.'s capital budgeting projects: Project 1 2 3 10% WACC IRR 11% 12% 14% 13% 11% Based on these data, knowing that these projects are INDEPENDENT, you would choose project 0 Project 1 and 3. Project 3 O Project 2 O Project 1

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