24) Optimal capital structure (10 points) Tangshan Mining Company must choose its optimal capital structure. Currently, the firm has a 40 percent debt ratio and the firm expects to generate a common stock dividend of $5 per share next year. The firm's common stock dividends are expected to grow at a constant rate of 3 percent per year for the foreseeable future. Common stockholders currently require 10 percent annual retum on their investment. Tangshan Mining is considering changing its capital structure, if such change would benefit the shareholders. The firm estimates that if it increases the debt ratio to 50 percent, it will increase its expected common stock dividend to $5.25 per share next year. Because of the additional leverage, common stock dividend growth is also expected to increase to 3.5 percent per year and this growth will be sustained indefinitely thereafter. However, because of the added risk associated with a higher level of debt, the required return demanded by common stockholders will increase to Il percent per year. Given the above information: Find Tangshan Mining's share price under the current capital structure 3 points) ->Find Tangshan Mining's share price under the proposed capital structure (3 points) Given your answers to part (a) and (b), should Tangshan Mining change the firm's capital structure? Explain why yes or no (4 points)