pay 10% on its 5 million long-term debt. It has an outstanding total shareholding of 1 million. In the next capital budgeting cycle, the firm expects to fund a positive NPV project costing 1.2 million according to its current capital structure. All the earnings after financing the projects are paid out as dividends (residual policy) 

Required:

 a) value of debt 

b) value of equity

 c) MPS 

d) dividend payout ratio