b What is the companys cost of equity Do not round intermediate calculations

# B what is the companys cost of equity do not round

• 7
• 100% (7) 7 out of 7 people found this document helpful

This preview shows page 2 - 5 out of 7 pages.

b.What is the company’s cost of equity? (Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g., 32.16.) c.What is the company’s weighted average cost of capital? (Do not round intermediate calculationsand enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
12/2/2017 Assignment Print View 3/7
12/2/2017 Assignment Print View 4/7 3.Award: 0 out of 12.00 pointsWatson, Inc., is an all-equity firm. The cost of the company’s equity is currently 13 percent, and the risk-freerate is 4.3 percent. The company is currently considering a project that will cost \$11.64 million and last sixyears. The company uses straight-line depreciation. The project will generate revenues minus expenseseach year in the amount of \$3.28 million.If the company has a tax rate of 35 percent, what is the net present value of the project? (Enter youranswer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations andround your answer to 2 decimal places, e.g., 32.16.)