Answer the following questions with the additional information given below. - Tax rate = 40%- [Debt] Its long-term bond with 10 years maturity, 8% semiannual coupons, and $1,000 face value is currently traded at $875.38 (No floatation cost, just for simplicity) - [Preferred stock] $6 dividend-paying (annually) preferred stock is currently traded at $50. - [Common stock] * The common stock that paid a $5 dividend at the last year-end is now traded at $53, and the dividend is expected to grow at 6% per year. * The risk-free rate is 3%, the market risk premium is 8%, and its beta is 1.5. According to studies, 3-5% bond-yield risk premium on common stocks is added to the long-term bond yield. (4) Using the average of the three measures from Part (3) for the cost of common equity, calculate the weighted average cost of capital (WACC). (4 points) Market Value Book Value 1296 Target stru 30% 20% Debt Preferred Stock Common Stock 896 10% 10% 70% 60% WA