Only C) and D) please.

8-6 The following table gives earnings per share figures for the Brueggeman Com pany during the preceding 10 years. The firm's common stock, 7.8 mil'on shares outstanding, is now (January 1, 2005) selling for S65 per share, an expected dividend at the end of the current year (2005) is 55 percent o EPS expected in 2005. Because investors expect past trends to continue, 3 be based on the earnings growth rate. (Note that nine years of growth reflected in the data.) f the g can are YEAR EPS YEAR EPS 1995 $3.90 2000 $5.73 1996 4.21 2001 6.19 1997 4.55 2002 6.68 1998 4.91 2003 7.22 1999 5.31 2004 7.8 The current before-tax interest rate on new debt is 9 percent. The firm's ginal tax rate is 40 percent. Its capital structure, considered to be optimal- follows: is as