In order to get full credit, you should explain the questions in detail with [our own words. 1) Explain the following capital costs and nancial leverage gure in detail. You need to explain the reasonings of cost of equity, weighted average cost of capital, and cost of debt changes corresponding to a rm's nancial leverage and capital costs. kc, (Cost of equity) kw,\" (Weighted average cost of capital) kd(Cost of debt) Capital costs A 3 Financial leverage (Debt ratio) 2) Does the dividend policy matter to stockholders? There are ve theories mentioned in your textbook: the residual dividend theory, the clientele effect, the information effect, agency cost, and the expectation theory. Which one(s) do you think more appealing for you? Why? Explain in detail