1. The basic WACC equation The calculation of WACC involves calculating the weighted average of the required rates of retum on debt preferred stack, 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 raising capital through retained earnings in the weighted average cost of capital (WACC) equation. Wyle Co. has $1.4 million of debt, $3 million of preferred stock and $1.8 million of common equity. What would be its weight on preferred stock? 0.23 0.53 0.48 0.43