What is Express Shippings WACC

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Reference no: EM13943165

You were hired as a Consultant for Express Shipping, whose targeted capital structure is 35% debt, 10% preferred stock, and 55% common equity. The interest rate on new debt is 6.5%, the yield on preferred stock is 6%, the cost of retained earnings is 11.25%, and the tax rate is 40%. The firm will not be issuing any new stock. What is Express Shipping's WACC?

Reference no: EM13943165

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