B. Problem -LO 2: (10 Marks) A company's capital structure consists solely of debt and common equity. It can issue debt at 15 percent interest rate, and its common stock is expected to pay a $5 dividend per share next year. The stock's price is currently $40, its dividend is expected to grow at a constant rate of 3 percent per year; its tax rate is 30 percent and its weighted average cost of capital (WACC) is 14 percent. 1. Calculate the after-tax cost of debt and the cost of common equity. 2. What percentage of the company's capital structure consists of common equity