1. Compute the weighted average cost of capital if the total borrowed is 10 million and: 4 million in common stock Yearly dividend 40 cents. Earnings per Share 25.00 (ignore growth). 2 million in preferred stock Yearly dividend 40 cents. Earnings per Share 25.00. Cost of selling stock 2 cents per share. 3 million in bank loan. Compounding monthly with yearly interest rate 6% The remaining is from retained earnings. The effective total income tax rate can be taken to be 35%