Nova Corporation is interested in measuring the cost of each specific type of capital as well as the weightage average cost of capital The firm has raise capital as the following Assets Cash Account receivables Inventories Plant and equipment Total Assets Balance Sheet $ (000) Liabilities and Equities 120 Long term debts 240 Preferred stocks 280 Common stocks 360 1,000 Total Liabilities and Equities $ (000) 350 120 530 1,000 Long-term Debts The company sell par bond that pays 6.5 percent anmal coupon interest rate with duration of 10 years. The par value is $1,000. To sell the bonds, an average discount of $20 per bond needs to be given. There is an associated flotation cost of 2 percent of par value. Tax rate is 40 percent Preferred Shares Preferred share has a par value of $100 per share the annual dividend rate is 6 percent of the par value and the flotation cost is expected to be 3.92 percent of current price. The preferred share is expected to sell for $102 before cost consideration Common Shares The current price of common shares is $35 per share. The company paid cash dividend of $3.25 per share last years. The firm dividends have grown at anmal rate of 5 percent and it is expected that the dividend will continue at this rate for the foreseeable future. The flotation costs are expected to be approximately 2 percent of current price Based on the information given calculate: Weights of each source of capital (3 marks) Cost of debt after tax (6 marks) Cost of preferred shares (5 marks) Cost of common shares. (6 marks) ( Weighted Average Cost of Capital (WACC)