Question 29 (14 points) You are to measure the overall cost of capital for VIU Tech. The firm is having a tax rate of 40% and the following information had been gathered for you. Debt: The firm can raise debt by selling $1000-par-value, 5% coupon, 23-year bonds on which semiannual interest payments will be made. The bond can probably be sold in market today for $970. Preferred shares: Current market price is $87 per share and $3.75 annual dividend. Common equity: current market price $59 per share. The firm just paid a dividend of $2.75 per share (Do) and the dividend growth rate has been estimated to be 5.8% per year. Capital structure: L-T debt weight=30%, preferred share weight: 20%, & equity weight=50% a. Calculate the cost component of each source of financing (debt, preferred shares, and retained earnings). b. Calculate the WACC for the firm