1. Currently the LOY Company has the following debt and equity structure on their balance sheet as of Dec 31, 2017: a. Bonds $ 400 Million b. Preferred Stock 65 Million c. Common Stock 580 Million. Tax rate is 28% The cost of capital rate for each of the following are: Bonds 6.5%, Preferred Stock 7.0% and Common Stock 11%. The CFO has assigned you to calculate the cost of capital for the corporation if the new target capital structure is Bonds 25%, Preferred Stock 5% and Common Stock 70%.