Question: Sam's Stores Enterprises is considering a project that has the following cash flow data. What is the project's IRR? WCC = 10%. a. 12.00% b.
Sam's Stores Enterprises is considering a project that has the following cash flow data. What is the project's IRR? WCC = 10%. a. 12.00% b. 13.00% c. 14.00% d. 15.00% e. 16.00% The company is expected to pay a year-end dividend of $1.4 per share, which is expected to grow at a constant rate of 4%; and the current equilibrium stock price is $40. New stock can be sold to the public at the current price, but a flotation cost of 10% would be incurred. What would the cost of equity from common stock be? a. 7.50% b. 13.65% c. 7.89% d. 8.12% e. 13.5%
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