Zeta Corporation wishes to determine its cost of common stock equity. The market price of its common stock is $75 per share. The firm expects to pay a dividend of $9.00 at the end of the coming year, 2013 and has a growth rate of 2.5%. What is the cost of retained earnings?

		12%
		15 %
		3 %
		None of the above

Zeta Corporation has decided to purchase a new Tzikafram and has determined the best break-down per capital expenditure will be as follows: 35% Debt, 10% Preferred Stock, 30% Common Stock, 15% Retained Earnings and, 10% Newly Issued Stock. What is the Weighted Average Cost of Capital? ra = (wi ri) + (wp rp) + (ws rs) + (wr rr) + (wn rn) =

		10 %
		8 %
		13 %
		None of the above

Project Excelsior

Initial Investment (CF0) $ 28,500

Cost of Capital 15%

Year

1 $10,000

2 10,000

3 10,000

4 10,000

What is the NPV for Project Excelsior?

		0.00
		50
		40,000
		None of the above

Project Clobber

Initial Investment (CF0) $ 27,000

Cost of Capital 15%

Year Cashflows

1 $11,000

2 10,000

3 9,000

4 8,000

What is the NPV for Project Clobber?

		618
		27,000
		38,000
		None of the Above