Question 3 You are given the following information for Somerset Utilities: Debt: 7,500 bonds outstanding with a 7.8% coupon, RM1,000 par value, 20 years to maturity, selling for 104 percent of par. These bonds make semiannually payments. Preferred Stock: 12,000 shares of 5.75% preferred stock outstanding, currently selling for a price of 2.0% below par per share. Common Stock: 210,000 shares outstanding, selling for RM83 per share; beta is 1.15. Market: 8% market risk premium, 4.2% risk-free rate, and 35% tax rate. (i) Calculate the specific cost of each source of financing. (13m) (ii) Calculate the firm's weighted average cost of capital (WACC). (9m)