(13) A firm has $800 million in debt outstanding and $200 million in market value of equity. Its current debt/capital ratio is 80%. The firm is having trouble making its interest payments. If it sells a division with an estimated value of $100 million and uses the proceeds from sale to retire debt, what will the debt/capital ratio be after this transaction? A. 67% B. 70% C. 78% D. 89% (14) Assume that investors pay 40% tax rate on dividends and 20% tax rate on capital gains. A firm's stock trades at $30/share and has an annual dividend of $1/share. If tomorrow is the ex-dividend day, what would be the stock price at the end of the day? A. $29.75 B. $30.75 C. $29.25 D. $30