Last year $2.81 Last 2 years $2.51 Last 3 years $2.24 Last 4 years $2.00 Last 5 years $1.93 The firm can sell the preference capital at its $10 per share par value. The dividend for the preference share is 19% of the par value. The cost of issuing and selling the preference capital is expected to be 5% of the market price. The table below shows the different bond issues of comparative market prices of equal risk to LJS Co.: Data on Bond Issues Issues S&P's Rating Price $ KWB Co. 8% 2023 975.25 GY CO. 7 2028 AA 850.75 JCW Co. 9.62 2025 A 960.50 LJS Co. uses the information in the Balance Sheet, as shown in the following table, which are based on target capital structure proportions, to calculate its weighted average cost of capital. Assets Cash Liabilities and Equity $120,000 Long-term debt $691,200 Accounts Receivable $240,000 Common Equity $1,728,000 Inventories $360,000 Preferred Stock $460,800 Plant and Equipment, net $2,160,000 Total Assets $2,880,000 Total Liabilities and Equity $2,880,000 Year 01234 Project A Cash Flow & (50,000) 10,000 Project B Cash Flow $ (30,000) 6,000 15,000 12,000 40,000 18,000 20,000 12,000