The basic WACC equation

The calculation of WACC ievolves calculating the weighted average of the required rates of return on debt, prelered shock, and cammon eguty, where the weights equal the percentage of each type of finanoing in the firm' overal captal structure.

$$ is the symbol that represents the cost of raising capital through reta ned earnings in the wephend mempe coit of capital $($WACC$)$ equabion.

Raymond Co$.$ has $$1\mathrm{.}4$ million of debt, $$2$ milion of preferred stock, and $$1\mathrm{.}2$ millon of common eouity. What would be iss meighe an preferned stock?

$0\mathrm{.}39$

$0\mathrm{.}43$

$0\mathrm{.}30$

$0\mathrm{.}26$