(b) Company B currently has 5 million preferred shares outstanding. The shares have a par value of K22.50 per share and their current price is K25 per share. B's tax rate is 40% and flotation costs on a new issue of preferred shares are 5%. What per-share dividend are the preferred shares paying if the component cost of the preferred shares in a weighted average cost of capital calculation is 8.25%? (5 marks) (c) Company C is a large firm listed on the Luse. It has the following capital structure: Debt-5 yrs, 8% Preferred Stock -5% coupon, K100 par Common Equity - K100 par Retained Earnings K mil 25 15 10 23 The current dividend for the company is K 50/share and is expected to grow at 3% per year in the foreseeable future. The equity shares trade at k 450/share. The preferred shares trade at K104/share. The debt currently trades at K 900 per K1,000 nominal value bond. Required: Calculate the firm's WACC. (10 marks)