1. The basic WACC equation The calculation of WACC imvolves calculating the weighted average of the required rates of return on debt, preferred stock, and common equity, where the weights equal the percentage of each type of financing in the firm's overall capital structure. is the symbol that represents the cost of preferred stock in the weighted average cost of capital (WACC) equation. Bryant Co, has $1.1 mallion of debt, $2 miltion of preferred stock, and $1.2 million of common equity. What woukd be its weight on debt? 0.47 057 0.76 0.18 To calculate the after-tanx cost of debt, multiply the before-tax cost of debt by Three Waters Company (TWC) can brow hands at an interest rate of 11.10% for a period of eight years. Its marginal federal-plus-state tax rate is 25\%. TwCs after-taxceost of debt is (rounded to two decimal places). At the present time, Thee Waters Company (TWC) has 20 year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,382,73 per bond, carry a cospon rate of 13%, and distribute annual coupon payments. The company incurs a federal pliss-state lix rate of 25%. If TWC wants to issue new debt, what would bet a reasionable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Found your YTM rate to two decimal place) 7,64x 3.7164 16.64%