Canvas X Question 31 5 pts Company XYZ has the following capital structure, which it considers to be optimal: debt-25%, preferred stock=15%, and common stock=60%.XYZ's tax rate is 40% and investors expect earnings and dividends to grow at a constant rate of 6% in the future.XYZ paid a dividend of $3.70 a share last year and its stock currently sells at a price of $60 per share. Ten year treasury bonds yield 6%, the market risk premium is 5%, and XYZ's beta is 1.3. The following terms would apply to new security offerings. Preferred: new preferred could be sold to the publicat a price of $100 per share, with a dividend of $9. Flotation costs of $5 per share would be incurred. Debt: debt could be sold at an interest rate of 9% Common stock new common equity will be raised only by retaining earnings Calculate WACC. Enter percentage as a whole number without a percent sign. (ex. 10% is 10) 5 pts Question 32