b. Electronic Enterprises Limited (EEL) has the following capital structure that it considers optimum Debt 25% Preferred Stock 15% Common Equity 60% EEL expected net income this year is $ 34,285.72. Its established dividend payout ratio is 30% and it's in the tax bracket of 40%. The investors expect its earnings and dividends to grow at a constant rate of 9% in future. EEL paid a dividend of $3.6 per share last year and its stock currently sells at a price of S60 per share. EEL can obtain capital in the following ways New common stock has a floatation cost of 10% on the par value Preferred stock with a dividend of $ 11 per share can be sold to the public at a price of $100 per share, however floatation costs will be $5 per share Debt can be sold up to $ 5000 at 12% pretax and additional debt up to $10,000 will be sold at 14%. Any debts above 10,000 will be sold at 16% Required 1) Calculate the cost of component capital below (7 Marks) I Retained Earnings New Common Equity Preferred Stock Debt 2) Determine Breaks in MCC Schedule and related WACC. (7 Marks)