5. Sales Net Income Total Assets Shareholder equity Tax Rate $1,000 $50 $2,000 $750 25.0% Long term bond issue: 1 million bonds, $1,000 par value, 24-year, 4% coupon bonds with semiannual payments and YTM of 7% Market Price per Share $44 VOL's Stocks Beta 1.25 Risk-Free Rate 3% Expected Return on Market 8.5% Market Risk Premium 5.5% Expected Dividend (D1 next year common stock = $2.50 per share) Expected Dividend Growth Rate in common stock = 6% Find the weight on Common Stock in VOL's market value capital structure. Find required return on stock given by dividend growth model (DCF)