Question 18 (1 point) A firm that is expected to pay $3 dividends next year, the dividends are expected to grow at a constant rate of 3% per year, and the current price of the firm's shares is $60. Assume the after-tax cost of debt is 2%. Find the cost of equity. 7% 8% 9% 10% Question 19 (1 point) Consider a firm that has invested in a 5-year project. It faces a 40% corporate tax rate and its investment belongs to the CCA class with a 30% depreciation rate. A new "take care of equipment" program implemented by the firm allowed it to increase the salvage value of the equipment by $20,000. What was the effect of this program on NPV if the project's discount rate is 12%? $6,809 $8,106 $9.714 $11,349