1] lCompany \"KT: has the following capital structure as of 12l31fl: Debt 250.000 Equity [Common Stock] l. Equity lPrefemed Stock} 5D.GDD The company expects to maintain this capital structure in the future and any future nancing will be done as they have done in the past. In '11; they are considering the purchase of as asset which would cost $T5,DDG. The '11 infor includes the impact of this asset. All changes from '1EI to '11 can be attributed to the benet of this asset. The asset would be depreciated based on 112} year MACRS. The project will be evaluated over 3 years. The company's nancial situation is as follows: lZlIZl 1231mm Revenue 1.0003012} 1.DE4.GGEI Expenses SEQDDD 935.13% Revenue is expected to increase by 4% each and every year {after year ll : Expenses are expected to decrease by 2% each and every year {after year 1}. Company is in the 4o% tax bracket Select information relative to projected stock prices. dividends and bond rates are as follows