All interest rates are annually compounded unless stated otherwise. All bonds have a face value of $1000 unless stated otherwise

You have the following information about the firm: 2,000,000 shares outstanding with 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=1/3 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 a flotation costs of F=15% Assume also that the risk-free interest rate is 5%, market expected rate of return is 14% and the firm's beta is 0.6 Problem 1: Find the value of Debt Problem 2: Find the coupon rate for the firm's existing bonds Problem 3: Find the cost of internal equity Problem 4: Find the dividend growth rate Problem 5: Find the cost of external equity