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The capital structure of the AZX is listed below. 1. The outstanding ordinary shares are 1 million and the market value is $3 per share

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The capital structure of the AZX is listed below. 1. The outstanding ordinary shares are 1 million and the market value is $3 per share The expected dividend is $0.225 and the growth rate is 2.5%. 2. The outstanding preference shares are 50,000 with the trading market value of $10 and dividend paid per share is $0.45. 3. The outstanding bonds are 10,000 at the face value of $500, the 10% coupon rate, the 10% yield to maturity, and with 5 years maturity period. The bond currently are trading at its face value in the market. 4. The outstanding mortgage of 1 Million dollars at the rate of 8% Also, the retained earnings was announced $500,000. Consider company tax at 30%. Required (by showing all calculations step by step for each financial instrument): A What is the firm total value, its financial instruments weight and their cost? Show the calculations for the ordinary share, preferred shares, bonds, mortgage and retained earnings (6 Marks) B. How much is the Weighted Average Cost of Capital for AZX? (4 Marks) C. If for the next year the attributable profit will be estimated at $250,000 and company decides not to keep any retained earnings, calculate the dividend distributions on ordinary and preferred shares. Explain the reasons for any increases or decreases in the dividend paid for ordinary shares Will the company keep the same promised growth rate for ordinary shares? (2 Marks) D. If AZX instead of the dividend distribution decides to buy back its stock from the share market, by knowing that the market value per share is $2.5, how many shares will be repurchased? What could be the changes in the ordinary shares EPS in next

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