2. Assume the following capital structure and cost of capital for A Company. Compute the Weight Average Cost of Capital considering all four sources of funds. Cost (%) Mortgage Bonds ($1,000 par) $20,000,000 5.14 Preferred Stock ($100 par) 5,000,000 13.40 Common Stock ($40 par) 20,000,000 17.11 Retained Earnings 5,000,000 16.00 3. Based on the results of your computation in problem #2, what financing mix would you prefer? Illustrate your