Calculate the current price of stock

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Reference no: EM131924076

1. A company's net income is $25,000,000. It has 1.5 million shares outstanding and its price-to-earnings ratio is 12.1. Calculate the current price of the stock.

2. A project has an initial cost of $50,250, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to two decimal places.

3. Sixx AM Manufacturing has a target debt—equity ratio of 0.58. Its cost of equity is 15 percent, and its cost of debt is 11 percent. If the tax rate is 35 percent, what is the company's WACC?

a) 12.12%

b) 12.72%

c) 10.45%

d) 11.51%

e) 10.03%

Reference no: EM131924076

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