3. Kennecutt Industries is evaluating its cost of capital in order to undertake a project with a seven-year life. The following information is provided: Long Term Debt - Each bond has a $1,000 par value and the total book value of all bonds is $400,000. All bonds have 7 years left to maturity and have a 9% coupon rate. The current price of a bond is $1107.74. Preferred Stock - Each preferred stock share has a par value of $100 and the total book value of all preferred stock is $100,000. The current price of a share of preferred stock is $92.16 and the preferred stock dividend is 8% of the par value. Common Equity - The current price of a share of common stock is $16 and there are 80,000 shares outstanding. The firm just paid a $1.00 dividend this year and investors expect dividends to grow at an annual rate of 4%. The corporation's marginal tax rate is 25% Using market value weights, calculate the firm's weight average cost of capital