Please answer just c) with explanations. Thanks!

The current yield to maturity on the bonds payable is currently 8%. The company's tax rate is 35%. Preferred shares are currently trading for $62.50. Common shares are traded for $60. The firm's beta is 1.5, the risk-free rate is 5% and the market risk premium is 6.5% a) Using book values only, calculate the firm's weighted average cost of capital. b) Using market values, calculate the firm's WACC. c) Assume now that the firm's target debt to equity ratio is .5 and that the targeted mix of common equity to preferred equity is 4:1, what is the company's WACC? Ottawa Inc. has the following capital structure taken from the firm's balance sheet: Bonds payable, 12% coupon rate, paid semi-annually, 10 years remaining $20,000,000 Preferred Shares, $5 annual dividend, par value per share =$10010,000,000 Common stock, 1,000,000 shares issued and outstanding 5,000,000 Retained earnings 30,000,000