1. You have been asked to restructure the financing for a corporation that has the following capital structure: Security Amount ($) Term Coupon/Dividend Market Current Type (years) Price Yield/Dividend Yield Secured 100,000,000 15 8.5% semi-annual 8.25 Mortgage Bond debenture 50,000,000 3 10% 6.0 debenture 25,000,000 6 7% 7.5 debenture 35,000,000 4.5 9% 7 4 $1.50 23.50 Preferred 45,000,000 shares Common 150,000,000 shares (voting) .55 45.00 You must recommend to the client a new structure that minimizes their ongoing cash flow cost for service of their outstanding obligations. Any of the securities listed can be bought out in part or whole through open market transactions, albeit over a period of weeks. A new issue of any security can be done at current yields. Calculate the weighted average cost of capital considering a tax rate of 35%