Cost of Capital? Debt: 8,000 10 percent coupon bonds, with 7 years to maturity, and a quoted price of94. These bonds pay interest quarterly.? Common stock: 400,000 shares of common stock selling for $45. The stock will pay adividend of $2.5 next year. The dividend is expected to grow by 4.5 percent per yearindefinitely. The beta of the stock is 1.5.? Preferred stock: 7,000 shares of preferred stock with a current price of $60 and adividend of $1.5 per share.? Market: The corporate tax rate is 30 percent, the expected return on the market is 12percent, and the risk-free rate is 2 percent.Calculate the WACC (SHOW ALL YOUR CALCULATIONS, i.e. weights,cost of debt, cost of common equity, and cost of preferred equity).Additional RequirementsLevel of Detail: Show all workOther Requirements: Show all steps and calculations. Also label the formulas if applicable. For example: “reCAMP = ” “wd=” “reaverage=”
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