2. Answer the questions. 1) The current stock price for Firm D is $100 while the next dividend is $12. Suppose that the dividend is expected to grow at 10% every year. Figure out the cost of equity for Firm D based on Dividend growth model (30points) 2) Figure out the cost of debt if the bond price for Firm D is $927 for the 5-year bond with a par value of $1,000 and a coupon rate of 10% paid semi-annually. (30points) 3) The tax rate is 50%. Firm D has a Debt-to-Equity ratio (D/E) of 1/3.1) Figure out the debt-to-firm value (D/V) using Debt-to-Equity ratio (D/E). 11) Figure out the weighted average cost of capital of Firm D (WACC). (40points) It 4) What is the relationship between WACC and capital budgeting? For example, does a higher WACC lead to more or less acceptance for a project? (20points)