Question 17

Hindelang Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's MIRR can be less than the WACC (and even negative), in which case it will be rejected.

WACC:	12.25%
Year	0	1	2	3	4
Cash flows	-$850	$300	$320	$340	$360

		13.42%
		14.91%
		16.56%
		18.22%
		20.04%

5 points

Question 18

You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D1 = $1.75; P0 = $42.50; g = 7.00% (constant); and F = 5.00%. What is the cost of equity raised by selling new common stock?

		10.43%
		8.50%
		12.24%
		11.33%
		9.97%