The Portland based company, We Know Capital Limited (WKC), has been hired as consultants by Christian's Global Importing (CGI) and Hibbert's Alternative Energy (HAE). As an employee of WKC, you have been assigned the responsibility of analysing the weighted average cost of capital of both companies. The relevant details for both companies are as follows: CGI HAE Value of Common Stock $2,800,000 $2,300,000 Value of Preferred Stock $1,000,000 $900,000 Value of Debt $1,200,000 $1,800,000 Beta 1.7 1.3 Dividend Rate for Preferred Stock 7% 7% Par Value of Preferred Stock $110 $95 Price of New Preferred Stock $76 $71 Yield To Maturity for Bonds 10.8% 7.9% The risk-free rate is currently 2.7%, the market risk premium is 7.5% and the corporate tax rate is 40%. i) Calculate the cost of each capital structure component for CGI. (7 marks) ii) Calculate the cost of each capital structure component for HAE. (7 marks) iii) Determine the weighted average cost of capital for CGI. (5.5 marks)