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QUESTION 11 6 point Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $2.60 per share. If the required return on this preferred stock is 8.5%, at what price should the stock sell? Arial 3 (12pt) T.-E. Words:0 Path:p Save All Answers Click Save and Submit to save and submit. Click Save All Ansters to see all answers O BI e 99. DOLL & $ 4 o 7 3 5 E U R T D J K F G H M V B N. QUESTION 12 Rocket Inc. is considering a project that has the following cash flow and WACC data. WACC: 10.00% Year 0 1 Cash flows -$1,000 $510 2 $440 3 $425 4 $405 What is the project's payback? What is the project's discounted payback? Is the project worthwhile to undertake? (Would you undertake the project?) Why? TT T Arial 3 (12pt) TEE Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save BI e O E 99+ DOLL Priser FI TVO F3 ES FB F7 A & #m $ 4 % 5 6 7 8 9 E IR T Y U D F G HJ K Sylvania Inc. is considering a project that has the following cash flow and WACC data. WACC: 11.00% Year 0 Cash flows -$1,000 $400 1 2 $360 3 $360 4 $350 What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. Is this a good project to undertake or not? Explain. What is the project's NPV? Is this a good project to undertake or not? Explain. What is the project's IRR? Is this a good project to undertake or not? Explain. Did you reach to the same conclusion in each of the decision criteria above? Why or Why not? Arial Ons Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All parch 99 DOLL Fo FB FO F2 % & # 3 4 5 7 8 W E R T. U S D F G HJ K BN NM

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