The management of a conservative firm has adopted a policy of never letting debt exceed 40 percent of total financing. The firm will earn $16,000,000 but distribute 30 percent in dividends, so the firm will have $11,200,000 to add to retained earnings. Currently the price of the stock is $40; the company pays a $5 per share dividend, which is expected to grow annually at 11 percent. If the company sells new shares, the net to the company will be $35. The firm retains all of its earnings and the price of the stock is unaffected. Round your answers for the break-point to the nearest dollar and for the marginal costs to one decimal place.

The marginal cost of capital schedule:

$0 - ?
	cost of debt: ? %
	cost of equity: ? %
	cost of capital: ? %

$ ? - $ ?
	cost of debt: ? %
	cost of equity: ? %
	cost of capital: ? %

above $?
	cost of debt: ? %
	cost of equity: ? %
	cost of capital: ? %