Mystro Corporation follows a residual distribution model and pays all distributions as dividends. Given the following data:

capital budget=$720000

* 2000bonds outstanding, each has a face value of $1000; bonds were sold at par.

*book value of equity=$800,000

*book value of debt=$2,200,000

* 30000 common share outstanding, PPS=$40 , and a beta=1.2

* forecasted end-of-year operating income=$1,000,000

* YTM=5%

* Tax rate= 40%

* Risk free rate= 4%

* Market Risk Premium =8%

1-What will be the companys payout ratio?

2- What is Mystro's WACC?