What is wacc for shi importer

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Problem 1: Shi Importer'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%, 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 its WACC?

Reference no: EM132809588

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