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WACC formula calculations

I need your help with this formula: WACC=50x0.12+10x0.08+20X0.06x(1-0.35)=$7.58 Million

My first question is where does the 1 come from and how do I calculate the figures in parenthesis?

And can you help me with the rest of the problem.

Thank you your help is GREATLY appreciated.

Solution Preview

We can show weighted average cost of capital (WACC) this way :

WACC= we x kce + wps x kps + wd x kd x (1-T)

kce = cost of common stock

kps = cost of preferred stock

kd = cost of debt

we= percentage of common stock in the capital structure

wps= percentage of preferred stock

wd= percentage of ...