XYZ Ltd. has an all-ordinary-share capital structure. Selected financial data for the company are shown below: Ordinary share outstanding Ordinary share price, P. Expected level of EBIT Dividend payout ratio = 2,000,000 = $10 per share = $5,000,000 = 100% (Assumption: No company tax). Under the present capital structure, what is the total value of the company? What is the cost of ordinary share capital, K? What is the composite cost of capital, K Now suppose that XYZ sells $1 million of long-term debt with an interest rate of 8%. The proceeds are used to retire ordinary shares. According to the independence hypothesis, what will be the company's cost of ordinary equity after the capital -structure change? What will be the dividends per share flowing to the company's ordinary shareholders? By what percentage has the dividend per share changed as a result of the capital structure change What will be the composite cost of capital after the capital-structure change? By what percentage has the cost of ordinary equity changed as a result of the capital structure change