Suppose firm XYZ has the following balance sheet figures: Book value Bonds: 8% coupon rate, annual coupons, 10 $1.0 million years to maturity Preferred shares: 10% dividend rate $1.0 million Common equity: common shares -100,000 $1.5 million shares issued at $15/share Retained earnings $0.5 million Total $4.0 million Assume the marginal tax rate is 40%. The market interest rate on similar risk 10-year bonds is 6%. Similar risk preferred shares are providing yields of 8%, and common share price is currently $25. (1) Find the market value proportions of bonds, preferred shares, and common equity in total asset value. (2) Assume that the firm paid a dividend per share last year of $1, which is expected to grow at 5% per year indefinitely. What is the cost of common equity? What is the firm's WACC