financials:Company Specifics Debt:$3,600$ par value $($$$1,000)$ bonds outstanding. All have a $7\%$ coupon, and will mature in $20$ years. Market value is currently $$1,050$ and interest is paid once a year.Equity:Common StockThe company has $40,000$ shares of common stock outstanding, and has a market price of $$50$ per share. The stock last paid a dividend of $$1\mathrm{.}40$ and had a constant growth of $5\%$ per year. Preferred StockThe company has $7,500$ shares of $5\%$ preferred stock outstanding. All have $$100$ par value and are selling for $$80$ per share. Floatation costs: Debt $=4\%,$ Equity $=5\%$ Market Specifics Market risk premium $=7\%$ Risk free rate $=4\%$Return on the average stock $=11\%$Tasks:Assuming the same capital structure is to be maintained, what is the optimal capital structure for Canyon Drilling?What is the component cost of capital for the firm?Calculate Canyon Drillings after tax weighted average cost of capital, using the information above.