Throughout the question, assume the marginal tax rate on corporate earning is 15%. A company has 500,000 shares of common stocks outstanding owned, valued at 10 dollars per share in period 0. The company also issued a 20-year term non-amortized loan worth 10 million at par, with a yield to maturity (YTM) of 8%. The company's period one after debt net earning (profit) is expected to be 2.5 dollars per share of common stock and is expected to grow at 10% per year forever. The company historically has committed to a dividend payout ratio of 40%. 1) What's the company's debt interest payment (coupon) per year? What's the firm's dividend per share in period 1? 2) What's the rate of return required by the common stock shareholder? What's the company's period 0 debt to equity ratio? 3) What's the company's WACC? (Hint: don't forget the tax rate!) 4) At period 1, the same company issues 500,000 shares of preferred stock at 10 dollars per share, which pays a 1-dollar dividend per share. The investment banker who helps broker the deal, received from the company, a broker fee of 5 cents for every preferred share sold to the public (flotation cost). The proceeds from this issuance will be used to finance a project that results in a net earnings growth rate of 15%. The company announced its commitment to honoring the 40% dividend payout ratio, though the high earning growth rate might result from more risky investment activity. The price of the common stock fell to 5 dollars per share in period 1, while the yield to maturity on debt remains unchanged. a. What is the rate of return required by the preferred shareholders (rps)? b. What is the cost of preferred stock (kps) ? c. the common stock shareholders' required rate of return (rcs)? d. What are the relative weights of common stock, preferred stock, and debt in the firm's capital structure? e. What's the company's WACC in period 1?