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%, rd = 6%, rps = 6.1%, and rs = 11%. If Shi has a target capital structure of 30% debt, 5%
preferred stock, and 65% common stock, what is its WACC? Round your answer to two decimal places.

Shi Importers

Debt
Preferred Stock
Common Stock
Tax Rate
rd
rps
rs
WD
WP
WCS

$300
$50
$250
30%
6%
6.10%
11%
30%
5%
65%

After-Tax Cost of Debt

4.20%

WACC

8.72%

, and $250 million in total common

tal structure of 30% debt, 5%
o decimal places.