Calculation of wacc with debt and preference and equity

Reference no: EM1317387

Calculation of WACC with debt and preference and equity

Shi Importers' balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. Shi faces a 40% tax rate and the following data-

Rd =6%, rps = 5.8%, and rs = 12%. If Shi has a target capital structure of 30% debt, 5% preferred stock, and 65% common stock, what is Shi's WACC?

Reference no: EM1317387

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