Defence Electronics Inc December $31,2021.($If information appears to be missing, chonge the row height to see it$.)$Based in Winnipeg, Manitoba, Defence Electronics Inc. $($DEl$)$ was founded to provide security systems, facilities controls and related services. DEl 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 $$9\mathrm{.}0$ million, managers understand that the cost of capital will be a key part of maintaining and improving Clearview's competitive edge. You have been asked to calculate the company's weighted average cost of capital $($WACC$),$ based on the following information.Over the last five years the annual dividends on the firm's common stock have grown at $3\mathrm{.}00$ percent per year and this growth is expected to continue indefinitely. A common share dividend of $$1\mathrm{.}780$ per share was recently paid. Common shares trade at $$66\mathrm{.}000$ per share. The company has authorized $327,000$ common shares, with $301,000$ common shares issued and outstanding.The company has issued $124,000$ of the $142,000$ preferred shares authorized. The annual preferred share dividend is $$1\mathrm{.}820$ per share. The latest preferred share price is $$31\mathrm{.}000$ per share.DEl has an outstanding bond issue, payable semi$-$annually, that originally had a $20$ year maturity. The initial bond offering was sold $9$ years ago, at par and raised $$21\mathrm{.}40$ million dollars. $($To be specific $21,400$ bonds were sold at $$1,000$ each.$)$ The yield to maturity, when they were issued, was $5\mathrm{.}30$ percent. Currently, the nominal yield to maturity on bonds with a similar risk is at $6\mathrm{.}24$ percent.The company will use its current capital structure to set target weights for debt, preferred shares and common shares. Flotation costs are $5\mathrm{.}00$ percent for preferred shares, $3\mathrm{.}00$ percent for common shares and $5\mathrm{.}00$ percent for debt. The company's tax rate is $35\mathrm{.}00$ percent. After$-$tax earnings for the year will be $$3\mathrm{.}00$ million and the company has a payout ratio of $35\mathrm{.}00$ percent.Use this information to answer the questions on the following requirements