Question 5 (1 point) Reddick Enterprises' stock currently sells for $24.50 per share. The dividend is projected to increase at a constant rate of 5.50% per year. The required rate of return on the stock, rs, is 9.00%. What is the stock's expected price 3 years from today? $31.65 $24.45 $28.77 $33.66 $26.76 Question 6 (1 point) You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D1 = $1.75; Po = $115.00; g = 7.00% (constant); and F = 5.00%. What is the cost of equity raised by selling new common stock? 9.98% 10.49% 8.52% 8.60% 7.05% Question 7 (1 point) Jazz World Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected. WACC: 9.75% Year 0 1 2. 3 4 Cash flows -$1,200 $400 $425 S450 $475 08222.13 0$185.11 09157.34 05174.00 0$198.07 Question 8 (1 point) Sapp Trucking's balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to maturity of 6.00%. This debt currently has a market value of $50 million. The balance sheet also shows that the company has 10 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $65 million. The current stock price is $22.50 per share; stockholders' required return, is, is 14.00%; and the firm's tax rate is 40%. The CFO thinks the WACC should be based on market value weights, but the president thinks book weights are more appropriate. What is the difference between these two WACCs? 2.48% 2.25% 2.36% 2.95% 1.77%