Question 3: Liverpool FC has the following capital structure, which it considers to be optimal: Debt Preferred stock Common equity 25% 15 60 100% Liverpool's federal-plus-state tax rate is 40%; and investors expect future earnings and dividends to grow at a constant rate of 9%. Liverpool paid a dividend of $3.60 per share last year, and its stock currently sells for $54.00 per share. LEI can obtain new capital in the following ways: New preferred stock with a dividend of $11 can be sold to the public at a price of $95 per share. Debt can be sold at an interest rate of 12%. a. Determine the cost of each capital component. [4 Marks] b. Calculate the WACC (2 marks]