Clearview Systems Ltd. (of information appears to be missing, change the row height to see it.) Based in Winnipeg, Manitoba, Clearview Systems Ltd. (CVL) was founded to provide security systems, facilities controls and related services. CVL established a solid reputation for quality and the business grew thanks to strong relationships with large, long-term customers in Canada and the United States. The Research and Innovation Group (RIG) is the development side of the company. They are considering a new contract that will strain resources for not only RIG, but the entire company. With an upfront cost of $8.0 million, managers understand that the cost of capital will be a key part of maintaining and improving Clearview's competitive edge. You have been asked to calculate the company's weighted average cost of capital (WACC), based on the following information. Over the last five years the annual dividends on the firm's common stock have grown at 3.00 percent per year and this prowth is aynor Over the last five years the annual dividends on the firm's common stock have grown at 3.00 percent per year and this growth is expected to continue indefinitely. A common share dividend of $1.230 per share was recently paid. Common shares trade at $40.000 per share. The company has authorized 306,000 common shares, with 282,000 common shares issued and outstandin The company has issued 140,000 of the 182,000 preferred shares authorized. The annual preferred share dividend is $2.050 per share. The latest preferred share price is $36.200 per share. CVL has an outstanding bond issue, payable semi-annually, that originally had a 25 year maturity. The initial bond offering was sold 10 years ago, at par and raised $14.80 million dollars. (To be specific 14,800 bonds were sold at $1,000 each.) The yield to maturity, when they were issued, was 7.00 percent. Currently, the nominal yield to maturity on bonds with a similar risk is at 6.44 Question Sheet New Answer sheet Currently, the nominal yield to maturity on bonds with a similar risk is at 6.44 percent The company will use its current capital structure to set target weights for debt, preferred shares and common shares. Flotation costs are 5.00 percent for preferred shares, 5.00 percent for common shares and 6.00 percent for debt. The company's tax rate is 30.00 percent. After-tax earnings for the year will be $5.00 million and the company has a payout ratio of 45.00 percent. Use this information to answer the questions on the next spreadsheet tab