1. Use the following data to complete the questions below. The firm's targeted capital structure is: 40% debt, 30% preferred shares and 30% common equity. The cost of debt is 4.35% The cost of preferred shares is 6.10% The cost of common shares is 6.90% The weighted average cost of capital formula is: k=wex ko+w, xk, +w.xk a. Compute the weighted average cost of capital. (2) Answer: b. Explain how this cost of debt relates to the potential new investments. (50 word maximum) c. How does your answer in part c change, if the new investment is funded by debt alone, and no shares will be issued to fund the new project? (50 word maximum) (2)