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Midwest Services Inc. expects to pay shareholders $7.20 per share next period. The firm will pay 50% of earnings as dividends going forward, and the

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Midwest Services Inc. expects to pay shareholders $7.20 per share next period. The firm will pay 50% of earnings as dividends going forward, and the firm's return on equity (ROE) will remain stable at 10%. The current stock price is $200. What is the estimated cost of equity capital? O 8.6% O None of the above/Other O 5.8% O 5.5% 09.0% Northeast Steel Inc. has some outstanding semiannual coupon bonds and no other source of debt capital. What is the firm's cost of debt capital? The bonds currently trade at $935.53 and have 6 years remaining until they mature. The coupon rate is 9% and par value is $1000. O None of the above/Other O 10.5% O 7.0% O 5.2% Compute the net present value (NPV) of the following project (in thousands) if the discount rate is 8%: -10 (Year O), 20 (Year 1), 40 (Year 2), 50 (Year 3) O 76.39 O Not enough information provided O 82.50 O 102.50

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