Need help answering this question. Please be as detailed as possible and show all stepts taken, as they question is worth a lot of points. Thank you!

1. (a). Given a proposed capital structure by Midway Ground Corporation as detailed here below, what is its weighted average cost of capital (WACC)? Assume that the company has a marginal tax rate of 40%. (10 points) Source of Capital Long Term Debt Preferred Stock Common Stock Capital Components $90,000 $30,000 $80,000 Cost 4.5% 10.6% 12.0% 1. (b). If the required rate of return for Midway Ground Corporation is 7%, should it accept the proposed capital structure? State why or why not (4 points)