(a) Round your answers to two (2) decimal points. A firm just paid a dividend of $1.00. Its dividends are expected to grow at 15% per year for two years, after which they are expected to grow indefinitely at 5% per year. The required rate of return is 11%. Draw the timeline indicating the dividend payments up to end of year 5. Calculate the current value of this stock. (8 marks) Round your answers to two (2) decimal points. Company XYZ is considering to raise capitals to support its expansion plan for the coming year. It has a target capital structure of 30% debt and 70% equity, with the financing costs summarised in the following table. (b) B D 1 Financing Costs for Company XYZ Cost of equity Total amount of debt After-tax cost Total amount of equity (in millions) of debt (in millions) 2 3 Less than $30 5.60% Less than $70 4 $30 to less than $100 6.40% $70 to less than $140 5 $140 to less than $300 6.50% 7.20% 8.50% If the company plans to raise 50 million, what would the weighted average cost of capital (WACC) be? Show your reasoning and write the corresponding Excel formula for this calculation. If the company plans to raise 200 million, what would the weighted average cost of capital (WACC) be? Show your reasoning and write the corresponding Excel formula for this calculation. (12 marks)