Cartier & Co$.$ has the following balance sheet values for $2001$ :

Preferred Stock: $$50$

Long Term Debt: $$250$

Common Stock: $$400$

Its preferred stock is trading at $10\%$ higher than its book value, $6\%$ dividend, and $10M$ shares.

The current bond yield of the long term debt is $10\%,7\%$ coupon rate, and $10$ years to maturity.

The recent price of its common stock is at $$50$ with $10M$ shares.

Tax rate is $34\%.$ EPS $($earnings per share$)$ of the company has grown from $$3\mathrm{.}90$ in the start of

$2001$ to $$7\mathrm{.}80$ in the end of $2010$ and its rate of growth is expected to continue way into the

future $($the rate of growth described is compounded$).$ The company's beta is currently estimated

at $1\mathrm{.}2$ while the risk free rate of return is $5\%.$ Company gives out $40\%$ of its earnings as

dividends. Risk premium of market on stocks with average risk is $4\%.$ Stocks are estimated to

have a return $2\%$ more above bond yields.

a$.$ What is the appropriate $kg$ for the WACC? $($Answer in decimal place value$).$

b$.$ What is the company's WACC? $($Answer in decimal place value, use $4$ decimal places$).$

c$.$ What is the current market value of the company's bonds? Write your answer in full

amount $($e$.$g$.1M$ should be written as $1,000,000)$

d$.$ What is the appropriate ks for the WACC using CAPM? $($Answer in decimal place value,

$4$ decimal places$).$

e$.$ What is the appropriate ks for the WACC using the dividend growth rate model? $($Answer

in decimal place value, $4$ decimal places$).$

f$.$ What is the appropriate $kp$ for the WACC? $($Answer in decimal place value, $4$ decimal

places$).$

g$.$ What is the expected net dividend in the next period to be given out by the company at

the current estimated growth rate? $($Use up to $4$ decimal places$)$