do not put in excel

You are to measure the overall cost of capital for VIU Tech. The firm is having a tax rate of 40% and the following information had been gathered for you. Debt: The firm can raise debt by selling $1000-par-value, 5% coupon, 23-year bonds on which semiannual interest payments will be made. The bond can probably be sold in market today for $970. Preferred shares: Current market price is $87 per share and $3.75 annual dividend. Common equity: current market price 59 per share. The firm just paid a dividend of $2.75 per share (D0) and the dividend growth rate has been estimated to be 5.8% per year. Capital structure: LT debt weight =30%, preferred share weight =20%,& equity weight =50% a. Calculate the cost component of each source of financing (debt, preferred shares, and retained earnings). ( 8 marks) b. Calculate the WACC for the firm. (4 marks)