MANabb Construction Company is trying to caiculate its cost of capital for use in making a capatal budgeting decisinn, Mr. Reid. the 7hice-president of tinance, has given you the following Mriformation and has asked you to compute the weighted average cost of capital. The company currently has an outstanding bond with a 11.5 percent coupon rate and another bond with a 12.5 percent rate The firm hes boen informed by its investiment deaier that bonds of ecual risk and credit ratings ate now selling ta yleld 124 percent. The common stock has a price af $98,50 and an expected dividend (D1) of $4.45 pet share. The historical growth pattern (q) for dividends is as follows The preferred stock is selling ot $90 per share and pays a dividend of $850 per share. The corporate tax rate is 40 percent. The flotation cost is 26 percent of the selling price for preferred stock. The optimum capital structure for the firm is 20 percent debt. 25 percent preferred stock, and 55 percent cammon equity in the form of retained earnings. a. Compute the histoncal growth rate (Do not round intermediate calculations. Round the final to 2 decimal places) Growth rate b. Compute the cost of capital for the individual components in the capital structure (Do not round intermediate calculations Round the final answers to 2 decimal places.) c. Catculate the weighted cost or each source of capital and the weighted average cost af capital (Do not round intermediate calculations. Round the final answers to 2 decimal places.) b. Compute the cost of capital for the individual components in the capital structure. (Do not round intermedia the final answers to 2 decimal places.) c. Calculate the weighted cost of each source of capital and the weighted average cost of capital (Do not roun calculations. Round the final answers to 2 decimal places.)