What is the payback period of a project that requires an investment of $1500 to and generates cash flows of $800 in year 1, $800 in year 2, $1000 in year 3, and $1000 in year 4? Assume a cost of...

What is the payback period of a project that requires an investment of $1500 to and generates cash flows of $800 in year 1, $800 in year 2, $1000 in year 3, and $1000 in year 4? Assume a cost of capital of 7%

A 3.07 years

B 1.88 years

C 2.93 years

D 2.07 years

E 1.12 years






Company has a capital structure of 45% equity and 55% debt It just paid out a dividend of $2.00 per share and the company has $1, 500,000 of retained earnings The dividends are expected to grow at 7.0% per year in perpetuity. Company shares are currently trading at $21.00. The Underwriter will charge issuing expenses of 8.0% on the existing share market value. The tax rate of company is 40%. What is company's cost of retained earning?

A 10.19%

B 17.70%

C 5.71%

D 17.19%

E 18.08%

F 16.52%