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Determining the shi wacc

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Problem: Shi Baldwin Importers balance sheet shows $250 million in debt, $25 million in preferred stock and $650 million in total common equity. Shi faces a 30% tax rate and the following Data:

R(debt) = 6%, R(preferred equity) = 5.8%, R(common equity)= 13.5%. If Shi has a target capital structure of 30% debt, 5% prefferred shares, and 65% common equity, what is Shi's WACC?

Reference no: EM132421964

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