. You have the following information about the firm 2,000,000 shares outstanding with a market share price of $80 per share No preferred shares A total of 40,000 bonds with YTM=6%. All bonds mature 18 years from now and have the same annual coupon rate. A debt-to-equity ratio of D/E=V A corporate tax rate of T=30% It is expected to pay $4 dividends next year and dividends are expected to grow at a constant rate If it needs to issue new equity it faces flotation costs of R=15% . Assume also that the risk-free interest rate is 5%, the market expected rate of return is 14% and the firm's beta is 0.6 Find . the value of Debt the coupon rate for the firm's existing bonds the cost of internal equity the dividend growth rate the cost of external equity the cost of debt (note just the cost of debt not the after-tax cost of debt) WAOC assuming the firm uses retained earnings . The bond value is $1000