Target capital structure and preferred stock

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Shi Importers' balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. Shi's tax rate is 30.00%, rd =10.80%, rps = 5.15%, and rs = 14.25%. If Shi has a target capital structure of 29% debt, 9% preferred stock, and 62% common stock, what is its WACC? EXPLAIN ANSWER AND SHOW WORK

Reference no: EM13924830

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