The management of a conservative firm has adopted a policy of never letting debt exceed 40 percent of total frnancing. The firm will earn $10,000,000 but dizz ibute 40 percent in dividends, so. the firm will have $6,000,000 to add to retained earnings. Currently the price of the stock is 550 ; the compacy pays a $3 per ahare ilvidend, which is expected to grav achualy at 9 perment af the company sells new shares, the net to the company will be 547 . Given this information, what is the a. cont of retained earnings? Round your answer to one decimal place. 6. cost of new common stock Round your answer to one decinsl place percent, Geven this information, what is the c. coit of debe? Hound your miswer to one decimbl place. d. cont af debt in mocess of 52,000,0007 lound your amwer to one decinial place. The firm raises funds in increments of $3,700,000 consisting of $1,110,000 in debt and $2,590,000 in equity. This strotegy maintains the capital structure of 30 percent debe and 70 percent equity. Develop the marginal cost of capital schedule through $11,000,000. Round your ansars for the break-points to the nearest dollar and for the marginal costs to one decimat place. The marginal cost of captal schedule: 505 cost of debt: cost of equity: cost of cagital: 5 cost of debt: cost of equity: cont of capital above 5 cost of dehti cost of equity: cost of cimpital: What urgac wounl eadi of the fonfowing have on the morginat cont of capenal scheduler? Q. die firm's inome ax rate increintes H incume tax rates wers to rise, the effecure cost of debt wisild , and the marinat cont of cephat would lat all lerveh. 1. the firm retains all of its eamings and the proce of the stock is unaffected. Round your answers for the bareak point to the nearest dollor and for the marginial coss to cee decimal alace. The marginal cost of capital schedule: obove 5 cost of detit cost of equityil cost of cagitali! 0. $11,000,000 is insuficant to meet mursctive mwesment ocaortanieies If the firm needs more than $11,000,000 thist fact the maginal cout ol comat krendide