5.3. DBS is currently no debt company but considers debt financing. The following information is DBS's financial data and WACC estimates with different capital structures. DBS pays all of its earnings out as dividends. Total capital: $200,000, Number of Shares outstanding: 10,000 , EBIT: $40,000, Tax rate: 20%, Risk free rate: 3% Market risk premium: 5% (1) Compute A and D (2) Compute B (3) Compute C and decompose C into premium for business risk and for financial risk (4) What is stock price when the company achieves the optimal capital structure