The following information applies to questions $3-8$:

Firm Y has annual sales of $$8,000,000,$ and total costs of $70\%$ of sales. Assume that the growth rate for the company is $4\%,$ with sales and costs growing proportionally. Firm Y has leverage ratio, $($D$/($D$+$E$)),$ of $30\%,$ which they intend to maintain going forward, and is currently $($i$.$e$.,$ in this year$)$ making annual interest payments of $$400,000$ on its debt. The required return to equity is $15\%,$ and the corporate tax rate is $35\%.$