Question #8 (5+2.5 +2.5 = 10 marks) Berry Corp. has 20,000 bonds outstanding with a 6.5% annual yield, 5 years to maturity, a $1,000 face value and a $1,050 market price. The company has 200,000 preference shares that pay a $2.0 annual dividend and sell for $28.5 per share. The company's 500,000 ordinary shares are currently selling for $25 per share and have a beta of 1.2. The risk-free rate is 5%, and the expected market return is 10%. Assume a 30% company tax rate. (a) Calculate the cost of preference shares, cost of ordinary shares and cost of debt. (b) What are the market values of preference shares, ordinary shares and debt? What is the total market value of all the securities of Berry Corp.? (c) What is Berry Corp's weighted average cost of capital (WACC)?