7. Calculating the weighted average cost of capital. Suppose that Tale Inc. has the following target capital structure: 50 percent sto 40 percent debt, and 10 percent preferred stock. Its cost of equity is estimated at percent, that of debt 6 percent, and that of preferred stock 4.5 percent. The tax law is 35 percent. a. What is Tale's cost of capital? b. Should Tale use more preferred stock financing than debt financing sit cheaper? financing since it is