choosing a long-term dividend growth rate (e.g., minimums or maximums)? Explain your answer. (10 marks) 3. Peacock Corp. has a target capital structure of 70% common stock, 5% preferred stock, and 25% debt. Its cost of equity is 11%, the cost of preferred stock is 5%, and the cost of debt is 7%. The relevant tax rate is 35%. a. What is Peacock's WACC? (10 marks) b. The company president has approached you about Peacock's capital structure and wants to know why the company does not use more preferred stock financing because it costs less than debt. What would you tell the president? (10 marks) 4. Holyrood Co. just paid a dividend of $2.45 per share. The company will increase its dividend by 20% next year