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You are helping the CFO of Sustainable Services Co. to compute the MIRR of a project. Please follow the steps below. Step 1: Calculate the

You are helping the CFO of Sustainable Services Co. to compute the MIRR of a project. Please follow the steps below. Step 1: Calculate the company's cost of equity. The company's stock has a beta of 1.2, a market risk premium of 8%. The risk-free rate is 3%. Question a) what is the company's cost of equity? (Please express your answer in percentage, e.g. 20.36%) Step 2: Calculate the company's WACC. The company's capital structure is 65% equity, 35% debt. The company's cost of debt is 8%. The tax rate of the company is 30%. Question b) What is the weighted average cost of capital (WACC)? (Please express your answer in percentage, e.g. 20.36%) Step 3: Calculate the MIRR of the project with the following cash flows. T=0 -$2,000 T=1 $800 T=2 $800 T=3 $800 T=4 $800 Question c) What is the MIRR of the above project? (Please express your answer in percentage, e.g. 20.36%)
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You are helping the CFO of Sustainable Services Co. to compute the MIRR of a project. Please follow the steps below. Step 1: Calculate the company's cost of equity. The company's stock has a beta of 1.2 , a market risk premium of 8%. The risk-free rate is 3%. Question a) what is the company's cost of equity? (Please express your answer in percentage, e.g. 20.36%) Step 2: Calculate the company's WACC. The company's capital structure is 65% equity, 35% debt. The company's cost of debt is 8%. The tax rate of the company is 30%. Question b) What is the weighted average cost of capital (WACC)? (Please express your answer in percentage, e.g. 20.36%) Step 3: Calculate the MIRR of the project with the following cash flows. Question c) What is the MIRR of the above project? (Please express your answer in percentage, e.g. 20.36\%)

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