As the finance manager, you are required to assess the cost of capital for Crimson Vineyards Distributors Inc., a company that specializes in the import and distribution of red wines across the Asia-Pacific region. The accounting department has provided you with the latest financial data: Long term debt There are 450,000 bonds that have 15 years to maturity, with a 4.5% annual coupon rate payable semi-annually, and a par value of $1,000. These bonds are currently trading at 95% of their par value. The company is in the 25% corporate tax bracket. Common stock There are 12.4 million shares outstanding of $5 par selling for $35 per share. The management of the company just paid annual dividend of $1.6 per share and the market expects all future dividends will grow by 3 percent per year thereafter. Preferred stock 900,000 shares selling at $93 per share, with dividend rate of 6 percent and face value of $100. (a) Calculate the market value weight of each type of financing for Crimson Vineyards Distributors Inc. Express each weight as a fraction of the total. (b) Calculate the pre-tax cost of debt for Crimson Vineyards Distributors Inc. using the interpolation method. [Hint: Use YTM at par +/- 0.8%] (c) Based on your answer in part (a) and (b), calculate the Weighted Average Cost of Capital (WACC) for Crimson Vineyards Distributors Inc.