DISCUSS QUESTION #1 (Refer to Handouts for Chapter 10 and WACC Example posted in Content) Newington Chemicals has planned capital expenditures of $1,700,000 for the coming fiscal year. The $1,700,000 is to be financed in the following way: Debt Preferred Stock Common Equity $400,000 400,000 900,000 The bonds have a coupon rate of 7% and will sell for par value. The preferred stock is 10%, $100 par. It sells for par value with $5 per share flotation costs. The common stock of the company sells for $55 per share with flotation costs of $5.00 per share. It is expected to pay a $3 dividend in the coming year, up 7%. The company's earnings, dividends, and stock price are expected to grow at 7% indefinitely. The company's tax rate is 40%. The Net Income for the Company this year is expected to be $1,500,000. The dividend payout ratio is 65%. Assume the beginning retained earnings balance 0