show all work pleae withot using excel.

instructions: Show all of your work for maximum credit. You may use a financial calculator and show your entries (i.e., FV = 1000, ete). There are 20 points possible. 1. (10 points) Moose River Industrial is in the process of expanding and raising new capital through an initial public offering of common equity. The company has a target capital structure consisting of a debt to value (wa) ratio of 30%. A current debt issue has a face value of $1,000 and annual coupon of 8% which is paid semi-annually. It has 15 years remaining to maturity and it currently sells for $1,045. Flotation costs of the new issue of stock are expected to be 5%, and using the pure play method with similar firms the stocks beta is estimated at 1.25. The investment bank believes the stock can sell at $20 per share. The company is expected to pay a dividend of $1.00 next year and it should grow at 7% per year indefinitely. If the tax rate is 40%, what is the weighted average cost of capital