Shi Import-Export's balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. Shi's tax rate is 35%, rd = 6%, rps = 6.3%, and rs = 14%. If Shi has a target capital structure of 30% debt, 5% preferred stock, and 65% common stock, what is its WACC?

Answer rating: 100% (QA)

To calculate the weighted average cost of capital WACC we need to find the weighte... View the full answer