5- Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? WACC = 9.75% Year 0 1 2 3 CF -1,000 450 450 450

A-14.11%

B- 15.52%

C- 15.81%

D- 10.72%

E- 17.22%

2- A firm has 12,000 shares of common stock outstanding with a book value of $20 per share and a market value of $39. There are 5,000 shares of preferred stock with a book value of $22 and a market value of $26. There is a $400,000 face value bond issue outstanding that is selling at 87% of par. What weight should be placed on the preferred stock when computing the firm's WACC?

3- You were hired as a consultant to Snafu Company, whose target capital structure is 25% debt, 15% preferred, and 60% common equity. The interest rate on new debt is 5.25%, the yield on the preferred is 6.00%, the cost of retained earnings is 8.10%, and the tax rate is 25%. The firm will not be issuing any new stock. What is Snafu's WACC? Round final answer to two decimal places.

4- . Cornell Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.

WACC:

12.00%

Year	0	1	2	3
Cash flows	-$860	$540	$460	$470