16. patta Computer Systems 13 considering a project Chat nas che following cash flow data. What is the project's TRA? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected. Year 0 -$1,100 2 $470 cash flows $450 $490 a. 9.700 b. 10.789 C 11.988 d. 13.315 e. 14.645 17. You conduct the following scenario analysis about the economy and performance of the project X: Economy Probability Project X return Very good 0.1 25% Good 0.2 10% Average 0.4 5% Bad 0.2 -5% Very bad 0.1 -15% What is the standard deviation of project X's return based on the forecast? a. 10 1981 D 9.4131 c. 21.623 d. 8.8515 e 12.995 18. Beingaart Systems 15 expected to pay a $3.00 dividend at year end (Di $3.00), the dividend is expected to grow at a constant rate of a year and the common stock currently sells for $60 a share The Bir has 30- year, 8% annual coupon bonds that sell at their par value of 51.000. The current tax rate 15 409. The target capital structure consists of 608 debt and 405 common equity What is the company's WACC all equity 15 trom-retained earr ngs? a. 7.125 b7311 18. Beingaart Systems is expected to pay a $3.00 dividend at year end (D! $3.00), the dividend is expected to grow at a constant rate of 7% a year) and the common stock currently sells for $60 a share. The firm has 30- year, 8% annual coupon bonds that sell at their par value of $1,000. The current tax rate is 40N. The target capital structure consists of 608 debt and 408 common equity. What is the company's WACC it all equity 15 from retained earnings? a. 7.178 b. 7.315 c. 7.458 d. 7.68 7.84