The following capital structure and cost of capital are given for KP Corporation. Cost (\%) The firm's number of securities in each category would be: Mortgage bonds =$20,000,000/$1,000=20,000 Preferred stock =$5,000,000/$100=50,000 Common stock =$20,000,000/$40=500,000 Assume that the security market prices are as follows: Mortgage bonds =$1,100 per bond Preferred stock =$90 per share Common stock =$80 per share Based on the original capital structure, the common stock market value must be split in the ratio of 4 to 1 since the market value of the retained earnings has been impounded into the common stock. Calculate the firm's overall cost of capital considering the market value of the four financing sources. Present your answer in tabular form. Is there a way to improve the firm's cost of capital? Explain. The following capital structure and cost of capital are given for KP Corporation. Cost (\%) The firm's number of securities in each category would be: Mortgage bonds =$20,000,000/$1,000=20,000 Preferred stock =$5,000,000/$100=50,000 Common stock =$20,000,000/$40=500,000 Assume that the security market prices are as follows: Mortgage bonds =$1,100 per bond Preferred stock =$90 per share Common stock =$80 per share Based on the original capital structure, the common stock market value must be split in the ratio of 4 to 1 since the market value of the retained earnings has been impounded into the common stock. Calculate the firm's overall cost of capital considering the market value of the four financing sources. Present your answer in tabular form. Is there a way to improve the firm's cost of capital? Explain