b) C) Readable Materials Inc., a manufacturer of coated freshet and coated groundwood paper used in catalogs, magazines, and commercial printing applications, has three bond issues outstanding. The following table describes these issues: Price $350.00 $1,150.00 $900.00 Face Value $1,000.00 $1,000.00 $1,000.00 Semiannuar In addition, the firm's 100,000 preferred shares of stock pay 50.7'5 per share quarterly and currently have a market price of 530 per share and a book value of $20 per share. The otation costs for debt, preferred, and common equity are 3%, 5%, and T04], respectively. The current price per share of the firm's 200,000 shares of common stock is $50, but they have book value of $30 per share. The firm expects an average common dividend growth rate of 3% indenitely and a dividend yield of 12%: for the next year. The firm's beta coefficient is 1.5 and its marginal tax rate is 40%. If the current risk free rate and market risk premium are 3% and 7% respectively, answer the following: What are the book and market value weights for each source of capital?r What are the component costs of capital (i.e., debt, preferred equity, retained earnings, and new common equity)\":J Use the weighted average of the bond market values to determine the cost of debt and the arithmetic average of the dividend discount model and CAPM model for the cost of retained earnings. 1What is the weighted average cost of capital using both the market and book value weights