Company X is considering changing its capital structure in light of the tough bu

Company X is considering changing its capital structure in light of the tough business environment. Currently Company Xs total capital consists of: $950 million in debt $20 million in leased assets $500 million of preferred stock $900 million in common stock $750 million in retained earningsThe debt coupon is 8% and tax rate is 40% while the current preferred share price is $96.20 and the dividend per share is $9.The companys common stock is trading at $25.50 its dividend payout this year is $1.15 and the growth rate of the dividend is 8.5%.Leases are at an average cost of 8%. Find the weighted average cost of capital given the data above. If Company X wants to change its capital structure (i.e. lower its WACC) what should it do?