Calculate WACC for Shi Importers
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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 faces a 40 percent tax rate and the following data: = 6%, = 6.4%, and = 13%. If Shi has a target capital structure of 30 percent debt, 5 percent preferred stock, and 65 percent common stock, what is Shi's WACC? Round the answer to the nearest hundredth.
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Shi Importers' balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in ...
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