You are to measure the overall cost of capital for VIU Tech. The firm has a tax rate of 40% and the following information had been gathered for you. Debt: The firm's bonds are currently rated as A. The current 10-year T-bond rate is 3.73\% based on Finance.Yahoo.com. NSIC.org website reports that the credit spread between A and AAA is 150 bps. Preferred shares: Current market price is $87 per share and $3.75 annual dividend. Common equity: current market price 59 per share. The firm just paid a dividend of $2.75 per share (D0) and the dividend growth rate has been estimated to be 5.8% per year. Capital structure: L-T debt weight =30%, preferred share weight =20%,& equity weight =50% a. Calculate the cost component of each source of financing (debt, preferred shares, and retained earnings). (6 points) b. Calculate the WACC for the firm. (4 points)