Please read the information below very carefully as it will be used to solve all of the questions below. Roberto Inc. is a manufacturing company. The company has always followed their ideal capital structure which the management insists is 40% debt and 60% equity capital. The company can issue bonds for 9% coupon rate with 22 years to maturity. The interest is paid semi-annually. The bonds can be issued with a price of $835.42 today. Roberto's marginal tax rate is 40%. For cost of equity, the company uses the CAPM based on SML. The risk-free rate in the market is 8% and the market rate of return is 14%. The company has a beta of 1.1. Roberto is experiencing a highly abnormal growth rate of 30%. This growth rate is expected to continue for four years. After year four, the growth rate is expected to return to a normal 8% and remain constant afterwards for the foreseeable future. Roberto just paid a dividend of $1.15. Furthermore, Roberto is evaluating several projects to invest in. The top project that is being considered will cost $1,000,000 and promises to pay $500,000 in year one, $400,000 in year two, $300,000 in year three and $100,000 in year four. This project will cease to exist with no salvage value at end of year four. So, the cash flow would look like the following: Question 5 (2 points) Using the information related to paid dividend, cost of equity and growth outlook for Roberto Inc., what should be the price for this supernormal growth stock today (P0)? $33.42$37.53$39.21$25.32 Question 6 (2 points) Using the cash-flows related to the top project Roberto is considering and the WACC you previously calculated, what is the expected NPV for the project (in 000's)? $109.45$49.18$53.09$78.82 Question 7 (2 points) Further evaluating the top project for Roberto, what is the anticipated IRR for the project? 11.8% 13.02% 12.45% 14.49%