Q4. Long term capital structure of company KL is given below: The interest rate of debt is 10%, and the dividend for common stockholders is $2 per share and $2.5 for preferred stock per share. The preferred -and common stock price are $13 and $15 per share respectively. The 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%, and 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. Q4. Long term capital structure of company KL is given below: The interest rate of debt is 10%, and the dividend for common stockholders is $2 per share and $2.5 for preferred stock per share. The preferred -and common stock price are $13 and $15 per share respectively. The 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%, and 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