Shi Import-Export's balance sheet shows $300 million in debt, $70 million in preferred stock, and $450 million in total common equity. Shi's tax rate is 25%, r_d = 8%, r_ps = 9.9%, and r_s = 17%. If Shi has a target capital structure of 40% debt, 7% preferred stock, and 55% common stock, what is its WACC? Round your answer to two decimal places.

Answer rating: 100% (QA)

Solution First we need to calculate the cost of capital ... View the full answer