3. A firm has determined optimal capital structure as shown below. Based on the given information calculate the weighted average cost of capital. + % Debt 25 Preferred Stock 10 Common Stock 65 O Following information is given about the cost of each financing option. Debt: The corporation has an average tax rate of 40 percent, It can issue debt at 15% cost(before tax) Preferred stock: The firm has determined it can issue preferred stock at $30 per share par value. The stock will pay an $3.00 annual dividend. The cost of issuing and selling the stock is $2 per share. Common stock: The firm's common stock is currently selling for $70 per share. The dividend expected to be paid at the end of the coming year is $5. Its dividend payments have been growing at a constant rate of 2%.]