11-7 WACC Shi Import-Export's balance sheet shows $300 million in debt, $50 mil- lion in preferred stock, and $250 million in total common equity. Shi's tax rate is 40%, ra 5.8%, and r = 12%. If Shi has a target capital structure of 30% debt, 5% preferred stock, and 65% common stock, what is its WACC? 6%, I'ps