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Consider the following cash flows of two mutually exclusive projects for Five Tran Inc. Year 0 1 laas -$1,900,000 $1,100,000 $900,000 $750,000 Paas -$680,000 $375,000

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Consider the following cash flows of two mutually exclusive projects for Five Tran Inc. Year 0 1 laas -$1,900,000 $1,100,000 $900,000 $750,000 Paas -$680,000 $375,000 $375,000 $390,000 2 3 What is the cost of capital that makes FiveTran Inc. indifferent between the two projects? Select one: O a. 22.71% O b. 17.45% O c. 36.90% O d. 30.82% An all-equity firm had a dividend expense of $30,000 last year. The market value of the firm is $620.000 today and the dividend is expected to increase at 4.25% each year forever. What is the cost of capital for this firm? Select one: O a. 9.29% O b. 9.09% O c. 5.04% O d. 9.53%

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