1. The capital structure of Matalan is below Source Target market proportions Long-term debt 45% 10 45 Preferred stock Common stock equity PREFERRED STOCK: The firm has determined it can issue preferred stock at $62 per share par value. The stock will pay an $5.00 annual dividend. The cost of issuing and selling the stock is $2 per share. DEBT: The firm can sell a 15 year, $1,000 par value, 10 percent bond for $900. A flotation cost of $2.5 flotation cost of the face value. COMMON STOCK: The dividend expected to be paid at the end of the coming year is $5 and selling price is $49. the cost of issuing the stock was $2.5 and dividend growth rate is 3%. the firm's marginal tax rate is 30 percent. What is the cost of capital of the firm? If you are a finance manager of the company and your task is to reduce the cost of capital .In this situation how you can minimize the cost. Explain