Marginal Incorporated (MI) has determined that its before-tax cost of debt is 10.0%. Its cost of preferred stock is 14.0%. Its cost of internal equity is 16.0%, and its cost of external equity is 21.0%. Currently, the firm's capital structure has $372 million of debt, $30 million of preferred stock, and $198 million of common equity. The firm's marginal tax rate is 25%. The firm is currently making projections for the next period. Its managers have determined that the firm should have $70 million available from retained earnings for investment purposes next period. What is the firm's marginal cost of capital at a total investment level of $153 million?

	12.28%
	10.63%
	11.46%
	13.83%
	12.18%

Determine the net present value for a project that costs $58,500 and would yield after-tax cash flows of $9,000 the first year, $11,000 the second year, $14,000 the third year, $16,000 the fourth year, $20,000 the fifth year, and $26,000 the sixth year. Your firm's cost of capital is 5.00%.

	$37,500.00
	$16,954.36
	$96,000.00
	$20,377.84
	$27,471.55

Determine the internal rate of return for a project that costs $167,000 and would yield after-tax cash flows of $27,000 per year for the first 5 years, $35,000 per year for the next 5 years, and $48,000 per year for the following 5 years.

	14.01%
	14.58%
	16.29%
	17.28%
	18.19%