Answer the questions.

The current stock price for Firm A 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 A based on Dividend growth model. $(20$points$)$

Figure out the cost of debt if the bond price for Firm $A$ is $$928$ for the $5-$year bond with a par value of $$1,000$ and a coupon rate of $10\%$ paid annually. $(20$points$)$

The tax rate is $50\%.$ Firm A has a Debt$-$to$-$Equity ratio $($D$/$E$)$ of $200\%.$

i$)$ Figure out the debt$-$to$-$firm value $($D$/$V$)$ using the Debt$-$to$-$Equity ratio $($D$/$E$).(20$points$)$

ii$)$ Figure out the weighted average cost of capital of Firm A $($WACC$).(20$points$)$