I's already given in the question. Dividend for common stock is 1.3dollars and 1.5 for preferred stock per share respectively.

3. Long term capital structure of company KL is given below: Sources of capital Book value ($ 000) Debts 20,000 Preferred stock 5,000 Common stock 7,500 Reserves (re) 17,500 Total capital 50,000 The interest rate for debt is overall 10%, dividend for common stock is $1.3 and $1.5 for preferred stock per share, respectively. Preferred -and stock price is $10 per share, growth rate is 0.06. Suppose that the average income tax ratio is 25 % and the corporate tax ratio is 20 %, calculate and interpret the WACC of the Company