You have gathered the following information for Frosty Ale, Inc., which has a 40 percent marginal tax rate. 2 million common shares outstanding 120,000 bonds outstanding Current yield to maturity is 7% Estimated market risk premium is 6% Current common stock price is $25 per share Current preferred stock price is $30 per share 90,000 preferred shares outstanding Estimated beta of stock is 1.2 10 year U.S. Treasury yield is 4.8% Annual preferred dividend is $3 Bonds are trading at par Bonds have $1,000 face value What is the firm's weighted average cost of capital (WACC)? Be sure to very clearly label/identify each input or item and what you are doing to have the opportunity to receive partial credit. Work is to be done individually. You are not to discuss or share answers with any current or potential students. You must show all of your work/calculations and clearly identify your answers Requirements To successfully complete this assignment, adhere to the following requirements: Submit by the due date posted. Submit the assignment as a spreadsheet or as scanned document