A.fod Manufactuting Company is trying to calculate its cost of capital for use in moking o captal budgeting decision, Me Jetec, the vice-president of finance, has given you the following information and has asked you to compute the weighted averege coss of copital. The company currently has outstanding a bond with o 14.6 percent coupon rate and another bond with an 9.2 percent rate. The firm has been informed by its investment banker that bonds of equal risk and crest rating are now selling to yield 12.5 percent. The firm common stock has a price of $70 and an expected dividend (D1) of $1.90 per share. The historical growth patiem (of for dividends is as follows: The preferred stock is seling at $90 per share and pays a dividend of $8.60 per share. The corpotate tax rate is 30 percent. The flotation cost is 3.0 percent of the selling price for preferred stock. The optimum capital structure for the firm is 25 percent debt, 10 percent preferred stock, and 65 percent common equity in the form of retained earnings. a. Compute the average historical growth rate. (Do not round intermediate calculations, Pound your answer to the nearest whole percent and use this value as g. Input your answer as a whole percent.) b. Compute the cost of capital for the individual components in the capital structure. (Use the rounded whole percent computed in part a for g. Do not round any other intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) b. Compute the cost of capital for the individual components in the capital structure. (Use the rounded whole percent computed in part a for g. Do not round any other intermediate calculations. Input your answers as a percent rounded to 2 decimal ploces.) c. Calculate the weighted cost of each source of copital and the weighted average cost of capital, (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal ploces.)