The following is an excerpt from Unica Corporation's most recent balance sheet: $ 27,000,000 20,000,000 Bonds payable (par value) Preferred stock (par value) Common equity Common stock $ 40,000,000 Retained earnings 35,000,000 75,000,000 $ 122,000,000 The bonds have a current market pise of 98.65. They have a coupon rate of 4% and mature in 20 years. Interest is paid semi-annually. New bonds would be issued at par and underwriting. and other issuance costs would be 1.25% of their face value, The preferred stock has a fixed divided rate of 5.50% and a par value of $25 per share. Their current market value is $26.20 per share. New preferred stock would be issued at par value and would net the firm $23.75 after underwriting and other issuance costs. Unica has 4.8 million common shares outstanding with a market value of $17 per share. The most recent dividend was $0.40 and the dividend growth rate is expected to be 5%. The firm has a beta of 13 and the current yield on long term Canada bonds is 2.50%. The return on the The preferred stock has a fixed divided rate of 5.50% and a par value of $25 per share. Their current market value is $26.20 per share. New preferred stock would be issued at par value and would net the firm $23.75 after underwriting and other issuance costs. Unica has 4.8 million common shares outstanding with a market value of $17 per share. The most recent dividend was $0.40 and the dividend growth rate is expected to be 5%. The firm has a beta of 1.3 and the current yield on long term Canada bonds is 2.50%. The return on the market portfolio is expected to be 6.50%. Determine the cost of common equity using the simple average of the dividend valuation and capital asset pricing model approaches. Unica's tax rate is 30% Required: Compute Unica's weighted average cost of capital. The next page is blank if you require additional room to document your analysis