Please show your work on the next following questions. Do not use Excel, handwritten answers. Thank you

Roberto Inc. is a manufacturing company. The company has always followed their ideal capital structure which the management insists is 40% debt and 60% equity capital. The company can issue bonds for 9% coupon rate with 22 years to maturity. The interest is paid semi-annually. The bonds can be issued with a price of $835.42 today. Roberto's marginal tax rate is 40%. For cost of equity, the company uses the CAPM based on SML. The risk-free rate in the market is 8% and the market rate of return is 14%. The company has a beta of 1.1. Roberto is experiencing a highly abnormal growth rate of 30%. This growth rate is expected to continue for four years. After year four, the growth rate is expected to return to a normal 8% and remain constant afterwards for the foreseeable future. Roberto just paid a dividend of $1.15. Furthermore, Roberto is evaluating several projects to invest in. The top project that is being considered will cost $1,000,000 and promises to pay $500,000 in year one, $400,000 in year two, $300,000 in year three and $100,000 in year four. This project will cease to exist with no salvage value at end of year four. So, the cash flow would look like the following: CF (S in 000's) Year 0 -1,000 (Initial Outlay) 1 500 2 400 300 4 100 Based on the information provided above, answer the following questions: d. 4.8% 3. What is the company's cost of equity capital using the CAPM? . 9.6% 8% b. 14.6% C. d. 12.09% What is weighted average cost of capital (WACC) for Roberto Inc? 4. 10.02% . b. 11.40% 12.86% C. d. 14% Using the information related to paid dividend, cost of equity and growth outlook for Roberto Inc., what 5. should be the price for this supernormal growth stock today (PO)? a. $25.32 $33.42 b. C. $39.21 d. $37.53 Using the cash-flows related to the top project Roberto is considering and the WACC you previously 6. calculated, what is the expected NPV for the project (in 000's)? $78.82 . b. $109.45 c. $49.18 d. $53.09 Further evaluating the top project for Roberto, what is the anticipated IRR for the project? 7. 11.8% a. b. 14.49% 12,45% C. d. 13.02%