The Destitutus Ventis Company (DV Co) has the following items on its balance sheet (question mark means that the quantity is unknown): Type of asset/liability Market value Risk (beta) Cash holdings 20m 0 Fixed investments 180m ? Short term debt 10m 0 Long term debt 70m 0.05 Equity 120m 1.1 The risk-free rate is 3%, and the average return on the market index is 7%. The number of shares outstanding for DV Co is 100m. The corporate and investor tax rates are zero. Modigliani- Miller irrelevance of dividend policy and capital structure holds. a. What is the weighted average cost of capital (WACC) for DV Co? (5 marks) b. The company plans to pay a dividend per share of 0.10, which is funded by increasing the company's long-term debt correspondingly. The new debt has the same beta as the old long-term debt. What is the value per share of the DV Co's stock on ex-dividend day if the dividend payment goes ahead? (10 marks) c. What is the beta of the equity on ex-dividend day? Explain. (15 marks) d. Outline the leading theories on payout policy: irrelevance theory, theories based on asymmetric information, and theories on taxes and transaction costs