Square limited directors currently considering project

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1. Square Limited’s directors currently considering a project with the following expected net cash flows: Year Expected Net Cash Flows 0 ($130) 1 $75 2 $65 3 $55 This project has a 12% p.a. cost of capital. What is the project’ NPV?

2. Newcrest Mining Limited will retain 40% of its expected earnings per share of $0.25. If Newcrest’s earnings per share are expected to grow at 2.25% p.a. into perpetuity and the required rate of return of it’s equity holders is 8.5% p.a. what is New Crest’s share price:

3. Pfd Company has debt with a yield to maturity of 5.9%?, a cost of equity of 13.6%?, and a cost of preferred stock of 8.9%.The market values of its? debt, preferred? stock, and equity are $11.4 ?million, $3.3 ?million, and $16.2 million, respectively, and its tax rate is 38%. What is this? firm's WACC?

Reference no: EM131839794

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