Using formulas

3. A company's stock trades at $52.50 per share. It is expected to pay a dividend, Di, of $2.50, and the dividend is expected to grow at a constant rate and the marginal tax rate is 40%. The target capital structure is of5.50% per year. The before tax cost ofdebt is 750% 45% debt and 55% common equity. Assume that retained eanings is the only source of equity financing Calculate the weighted average of capital. LIO points] coS 4. Consider the following information about a company: Sales revenue, $350; accounts payable, $40: total assets, $500, (net) profit margin, 5%; accrued liabilities, S30, dividend payout ratio, 6044%; projected growth rate in sales, 30%. The company is operating at full capacity. Assets and spontaneous liabilities must increase by the projected growth rate in sales. Calculate the additional funds needed. (Do not construct any financial statements.) [10 points]