Batelco Company has an opportunity to finance its new project the following options available to you in order to choose the appropriate capital structure for the corporation. Sources Weight (W) Cost (C) Common Stocks (CS) 20% 7.5% Option 1 Preferred Stocks (PS) 35% 6% Bonds (B) 45% 5% Sources Weight (W) Cost (C) Option 2 Common Stock (CS) 15% 8.5% Retained Earnings (RE) 30% 4.5% Loans (L) 5506 Note: the tax was 30%. Loans (L) 55% 6% Note: the tax was 30%. Required: (10 marks) A- Analyse the weighted Average Cost of Capital (WACC) before and after tax for each capital structure option B. Which option vou prefer to take and Why