You are to measure the overall cost of capital for VIU Tech. The firm is having a tax rate of 40% and the following information had been gathered for you. (Hint: Flotation cost should be included in the calculation of cost of new common share issuance.) Debt: The firm can raise debt by selling $1000-par-value, 8% coupon, 20-year bonds on which semiannual interest payments will be made. The bond can probably be sold in market today for $980 (98% of par). Preferred shares: $100 par value and $7.6 annual dividend. Common equity: current market price $90 per share. The firm just paid a dividend of $7 per share (Do) and the dividend growth rate has been estimated to be 6% per year. The stock flotation cost is $12 per share for new share issuance. 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, retained earnings, and new common shares). (8 marks) b. Calculate the two WACCs: one based on retained earnings and one based on new stock issuance. (6 marks)