. Long term capital structure of company KL is given below: Sources of capital Book value ($ 000) L.T. Debts 30,000 Preferred stock 5,000 Common stock 6,000 Reserves(re) 19,500 Total capital 60,500 The overall interest rate of debt is 10%, the dividend for common stockholders is $1.3per share and $1.5 for preferred stock per share, respectively. Preferred -and stock price is $13 per share. Net income of the Company is expected to be paid 40% as a dividend and 60% will be added to the retained earnings. The IRR of the company has been measured lastly as 15%, the growth rate of the dividend is 0.06. Suppose that the average income tax ratio is 30 % and the corporate tax ratio is 25 %, calculate and interpret the WACC of the Company