Sanchez Company bas planned capital expenditures that total $2,000,000. The company wants to maintain target capital structure that is 35W debt and 65% equity. The company forecasts that its set income this year will be %1800,000. If the company follows a residual dividend policy, what will be its total dividend payment? $500,000 O $400,000 $200,000 $300,000 $100,000 4 Serendipity Inc. is re-evaluating its debt level. Its current capital structure consists 80% debt and 20% common equity, is beta is 1.60, and its tax rate is 35%However, the CFO thinks the company has too much debt, and be is considering moving to a capital structure with 40% debt and 60% equity. The risk free rate is5.0% and the market risk premium is 6.0%. By how much would the capital structure shift change the firm's cost of equity? -6.36% -6.99% -5.78% -769% -5.20%