7. Muller Inc. is considering a project that will result in initial after-tax cash flow of 55.5 million at the end of the first year, 55.8 million at the end of the second year, 56.0 million at the end of the third year, then the cash flow will grow at a rate of 5% per year indefinitely, Tax rate is 40%. The firm has a target debt-equity ratio of 0.5, a cost of equity of 13.3%. The company's only debt is a 5 year bond. The similar bond in the market has a yield to maturity of 12.5%. Muller's weighted average cost of capital should be (56) In percentage, two decimal places) The project should only be undertaken if its cost is less than _(57) (in million S, two decimal places). Page 13 8. Jack plans to invest one million dollars in a portfolio consisting two stocks: Facebook and GE. He estimated that the standard deviation of Facebook is 18% and the standard deviation of GE is 10%. The portfolio risk will be maximized at (58) (In percentage, two decimal places) if the correlation coefficient between GE and Facebook is (59) The portfolio risk will be minimized if the correlation coefficient between GE and Facebook is (60)_ . If he observed that Facebook and GE stocks are perfect negatively correlated. How much Jack needs to invest in Facebook so that he could make this portfolio risk free? (61)_ (in million S. two decimal places)