1. Timco's CEO attended a conference and heard about the modified IRR.He decides that this is what the company should use to analyze projects.The project he wants analyzed has a cost of $1,000 at Time = 0 and inflows of $300 at the end of Years 1-5.The new cost of capital is 10%. What is the project's modified IRR (MIRR)?
2. SAA's key rival, Andrew Airlines has a 7 percent preferred stock outstanding that is currently selling for $48 a share. The preferred stock has a $100 par value. The market rate of return is 10 percent and the firm's tax rate is 34 percent. GST is 13%.What is the Andrew's cost of preferred stock?

Please provide detailed explanation.