Version 3 Year 0 1 2 3 4 STO RCL 13) Disturbed Corporation needs to raise $56 million to fund a new project. The company will sell shares at a price of $23.50 in a general cash offer and the company's underwriters will charge a spread of 6.5 percent. The direct flotation costs associated with the issue are $675,000 and the indirect costs are $425,000. How many shares need to be sold? A) 2,598,703 shares B) 2,490,841 shares C) 2,254,520 shares D) 2,382,979 shares E) 2,264,509 shares 14) Yellow Day has a project with the following cash flows: Cash Flows A) 8.79% B) 9.65% C) 10.47% D) 10.25% E) 8.04% CEIC -$ 25,600 9,850 14,700 8,880 -2,900 BATE IN 2 ;. 41- What is the MIRR for this project using the reinvestment approach? The interest rate is 9 percent. 15) Countess Corporation is expected to pay an annual dividend of $4.87 on its common stock in one year. The current stock price is $76.19 per share. The company announced that it will increase its dividend by 3.75 percent annually. What is the company's cost of equity? A) 9.58% B) 9.86% C) 10.38% D) 10.14% E) 10.76% 5

seil shares at a noice of si2. so in a groenal casfi efler and the company's anderwriters aill chape a wpecal of 6 s pereme, Dee dicect flotation costs aboeisted with the isur ara A 2,408,709 iharen i.) 2,490.841 share (c) 2,254,520 ihatre b) 2,382,979 shares (1) 2.264,so9 shanes 14) Yeilow Dity has a froject with the following cast ilhas: What is the MIRR for this project using the reinyestaticat approach? The interest rate is 9 pertent. (A) 8.7986 B) 9.657 10.47\% D) 10.25% e) 8.047 15) Countesi Corporation is expected to pay an annual dividend of 54.87 on its common stock in ore year, The curnent stock price is 576,19 per shate. The company announced that it will increase its dividend by 3.75 percent annually. What is the company's cost of oquity? A) 958% b) 9.86% c) 10.38% D) 10,14% E) 10.76% seil shares at a noice of si2. so in a groenal casfi efler and the company's anderwriters aill chape a wpecal of 6 s pereme, Dee dicect flotation costs aboeisted with the isur ara A 2,408,709 iharen i.) 2,490.841 share (c) 2,254,520 ihatre b) 2,382,979 shares (1) 2.264,so9 shanes 14) Yeilow Dity has a froject with the following cast ilhas: What is the MIRR for this project using the reinyestaticat approach? The interest rate is 9 pertent. (A) 8.7986 B) 9.657 10.47\% D) 10.25% e) 8.047 15) Countesi Corporation is expected to pay an annual dividend of 54.87 on its common stock in ore year, The curnent stock price is 576,19 per shate. The company announced that it will increase its dividend by 3.75 percent annually. What is the company's cost of oquity? A) 958% b) 9.86% c) 10.38% D) 10,14% E) 10.76%