LL Incorporated's currently outstanding 11% coupon bonds have a yield to maturity of 14%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 30%, what is LL's after-tax cost of debt? Round your answer to two decimal places. Answer = ___________

Summerdahl Resort's common stock is currently trading at $32.00 a share. The stock is expected to pay a dividend of $2.00 a share at the end of the year (D₁ = $2.00), and the dividend is expected to grow at a constant rate of 5% a year. What is the cost of common equity? Round your answer to two decimal places. Answer = _____________

Booher Book Stores has a beta of 0.4. The yield on a 3-month T-bill is 4.5% and the yield on a 10-year T-bond is 6%. The market risk premium is 4.5%, and the return on an average stock in the market last year was 10.5%. What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places. Answer = _________________

David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on the company's outstanding bonds is 8%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 10.77%. What is the company's cost of equity capital? Round your answer to two decimal places. Answer = _________________

A project has an initial cost of $40,100, expected net cash inflows of $11,000 per year for 7 years, and a cost of capital of 13%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round your intermediate calculations. Round your answer to the nearest cent. Answer = _____________________

A project has an initial cost of $55,000, expected net cash inflows of $11,000 per year for 10 years, and a cost of capital of 8%. What is the project's IRR? Round your answer to two decimal places. Answer = __________________