2. The capital structure of company LM is given below: Sources of capital Book value ($ 000) Debts 16,000 Preferred stock 4,000 Common stock 10,000 Ret.earn.re) 20,000 Total capital 50,000 The interest rate for debt is 10%, price of preferred stock is $4 per share, price of common stock is $4.8 per share. Company pays out dividend $1 per share to common stock and $1.1 to the preferred stock. The expected growth rate is 6%, corporate -and income tax rates are 20% and 25% respectively. Calculate and comment the weighted average cost of capital of the firm