We have the capital structure for the project and market data for Studio s security as follows: Debt: 5,000 of 9 percent coupon bonds, 5 years to maturity, $1000 par value each and the bonds have Yield to maturity of 10% and make annual payment. Preferred stock: 10,000 shares of 9 percent preferred stock outstanding, required return of preferred stock is 11% per share, par =$100. Common stock: 60,000 shares outstanding, the beta is 1.2, expected dividend next year =68,g=4% Retained earning: used $2,000,000 from net income of previous period Market data: 14% average market return; Treasury bill has rate of return is 3%. Tax:30% Require: a. Calculate the price of bond, preferred stock and common stock? b. Calculate WACC? If prices of firm's securities have been calculated is the issuing prices. c. What happen to WACC if firm did not use retained earning for this project, the firm borrowed from a local bank with the real interest rate of 9%