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10-7 WACC Shi Importers'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 40%, r. = 6%, r = 5.8%, and r = 12%. If Shi has a target
capital structure of 30% debt, 5% preferred stock, and 65% common
stock, what is its WACC?

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So, WACC is 9.17% If you have... View the full answer


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