Question 3: Weighted Average cost of capital (WACC)Capital Structure of Kijiji Inc. 6.5% 20-year bond (Semi-annual) $8,000,000, 5% $100 par preferred stocks $1,500,000, Common Stocks $50 par $12,500,000 (Additional Information) Common and preferred stocks are both trading at $57 and $93 on the stock market respectively. ii) The market risk premium is 8% while interest rate on Treasury bonds is 4.5%. The firms beta factor is 1.05 iii) Bonds are trading at 92% of par value. Interest is paid semi-annually iv) The corporate tax rate is 40%. Required I) Compute the number of bonds, preferred stocks and common stocks. II) Compute the market values of each source of capital and the capital structure weights. III) Compute the cost of preferred stock, (Kp), cost of debt (Kd) and cost of equity, (Ke). IV) Compute the weighted average cost of capital (WACC).