You've been asked to determine the profit or loss on a potential project. It will cost...

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You've been asked to determine the profit or loss on a potential project. It will cost $59,351,757, it will increase net income by $23,479,265 the first year, $29,271,671 the second year, $11,158,221 the third year, $11,419,471 the fourth year and $10,673,793 the fifth year. Your company just paid a dividend of $2.83, they plan to increase the dividend by 10.8% next year, by 7.7% in two years and then 2.4% each year forever after that. Expected return for their stock is 10.9%. The company has a beta of 1.0 the return on the market is 8.2% and the risk free rate is 3.9%. They have 5,857,505 shares outstanding. The company also has 162,319, $1000.00 face value, 15 year, semi annual bonds issued 9 years ago. The bond has a coupon of 7.9%. Current market rates are 6.6%. It also has 68,273 shares of preferred stock. Preferred stock pays a dividend of $8.2 and is currently selling for $110. The company's before tax cost of debt is 6.9% and tax rate is 28% You've been asked to determine the profit or loss on a potential project. It will cost $59,351,757, it will increase net income by $23,479,265 the first year, $29,271,671 the second year, $11,158,221 the third year, $11,419,471 the fourth year and $10,673,793 the fifth year. Your company just paid a dividend of $2.83, they plan to increase the dividend by 10.8% next year, by 7.7% in two years and then 2.4% each year forever after that. Expected return for their stock is 10.9%. The company has a beta of 1.0 the return on the market is 8.2% and the risk free rate is 3.9%. They have 5,857,505 shares outstanding. The company also has 162,319, $1000.00 face value, 15 year, semi annual bonds issued 9 years ago. The bond has a coupon of 7.9%. Current market rates are 6.6%. It also has 68,273 shares of preferred stock. Preferred stock pays a dividend of $8.2 and is currently selling for $110. The company's before tax cost of debt is 6.9% and tax rate is 28%