You were hired to evaluate Miller Manufacturing's expansion project. the firm is expected to pay a $2.00 dividend at year end (D1 =$2.00 ), the dividend is expected to grow at a constant rate of 7 percent a year, and the common stock currently sells for $50 a share. The before-tax cost of debt is 8 percent, and the tax rate is 40 percent. Their target capital structure consists of 60 percent debt and 40 percent common equity. 1. What is the company's WACC? Show all your work. 2. The company is expanding and the IRR of the expansion project is 8 percent Should the project be accepted or rejected? why? Explain. 3. Do you expect the expansion decision to change if the company's stock price rises to $60 ? Why or why not? 4. Explain how the firm's decision is affected by its choice of capital structure? Show all your work. Explain all your answers using the appropriate equations. Your explanation determines your grade