The JIRAF Company has 2000 bonds outstanding that have a market price of $1168 each and a face value of $1000. floatation cost is 0.026 the bond pays coupon of 0.052 quarterly for 30 years. The company also has 6,000 shares of preferred stock at a market price of $40 and dividends 1.3 each par value 20 dollars. The common stock is priced at $28 a share it is undervalued by $1.5 and there are 75000 shares outstanding, par value is 5 dollars the stock paid this year $1 and will continue to grow at a rate of 0.065. TAXES ARE 0.38 what is the weight of preferred stock according to book value method what is the WACC? use the book value method