Pearson Motors has a target capital structure of 45% debt and 55% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 12%, and its tax rate is 40%. Pearson's CFO estimates that the company's WACC is 10.10%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.

Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its before-tax cost of debt is 10%, and its marginal tax rate is 40%. The current stock price is P₀ = $24.00. The last dividend was D₀ = $2.75, and it is expected to grow at a 6% constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places.

Project L costs $60,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 13%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.

Project L costs $60,000, its expected cash inflows are $15,000 per year for 8 years, and its WACC is 14%. What is the project's payback? Round your answer to two decimal places.

A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:

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Project S	-$1,000	$881.00	$260	$15	$5
Project L	-$1,000	$0	$250	$380	$843.71

The company's WACC is 9.0%. What is the IRR of the better project? (Hint: The better project may or may not be the one with the higher IRR.) Round your answer to two decimal places.