3. Mordor Inc. hired you as a consultant to help estimate its cost of capital. They already estimated that their cost of debt is 6%, cost of preferred stocks is 4.5%. Tou have obtained the following data: Do = $1.2: Po = $27.50; and g = 7.00% (constant). What is the cost of equity from retained earnings? [Hint: Po Do(1+g) %3D " the capital structure is 60% common equity, 30% debt, and 10% preferred equity, then what is the WACC? [Hint: WACC = w,la(1- T) + Wpip + Wsis] %3D