Miguel Corp (same as the company in the previous problems) has just paid out a per- share dividend of $2.95 on its common stock. Analysts expect the company's earnings and dividends per share to grow at a constant rate of 3.15% for the foreseeable future. Each share of this common stock is currently trading for $61. Based on this information, estimate Miguel Corp's marginal cost of common equity. 2.98% 8.14% 4.99% 7.99% 4.8495 Terra Corp is considering the purchase of a new machine that has a quoted price of $400,000. Shipping and installation will be an additional $20,000, and the machine will require an initial investment in net working capital of $18,000. The machine will be depreciated fully, with equal amounts of depreciation each year, over a six-year schedule. Also, the machine will be kept for six years, if purchased. During each of those six years, it is estimated that the machine will cause an increase in Terra's revenues to the extent of $188,000. Annual operating costs will also increase by $ 22,000. At the end of the six years, it is expected that the machine could be sold for $190,000. Terra Corp faces a marginal tax rate of 30%. The company's weighted average cost of capital is 13%. What is the cash flow associated with this machine/project at time 0? -$402,000 $400.000 $362.000 -$438.000 $402.000