Please answer a) to e).

8-5 On January 1, 2005, the total assets of the Dexter Lompany were S 270 million. he firm's present capital structure, which follows, is considered to mal. Assume that there is no short-term debt. S135,000,000 Long-term debt Common equity Total liabilities and equity 135,000,000 S0, S270,000,000 New bonds will have a 10 percent coupon rate and will be sold at par. Com mon stock, currently selling at S60 a share, can be sold to net the company $54a share. Stockholders' required rate of return is estimated to be 12 percent, com sisting of a dividend yield of 4 percent and an expected growth rate of 8percent. (The next expected dividend is $2.40, so $240/$60-4%) Retained earnings are estimated to be $13.5 million. The marginal tax rate is 40 percent. Assuming that all asset expansion (gross expenditures for fixed assets plus related working capital) is included in the capital budget, the dollar amount of the capital budget, ignoring depreciation, is S135 million a. To maintain the present capital structure, how much of the capital budget must Dexter finance by equity? b. How much of the new equity funds needed will be generated internally? c. Calculate the cost of each of the equity components. e. Calculate the WACC (1) below and (2) above the break in the MCC schedule. Externally? hal eperdinure will here be a break in Dexter's Nco schedule? f. Plot the MCC schedule. Also, draw in an IOS schedule that is consistent with both the MCC schedule and the projected capital budget. (Any 1Os schedule that is consistent will do.)