2. Assume the following capital structure characteristics for ICOULDDAGROWN Corporation:

Debt = $450,000,000 Preferred Stock = $50,000,000

Common Equity = $500,000,000

rd = required return on debt = 6.00%

T = Corporate Tax Rate = 25%

rps = Required Return on Preferred Stock = 5.25%;

rs = Required Return on Common Stock = 12%.

2a. What is the WACC for ICOULDDAGROWN Corp.?

2b. Why is the WACC for ICOULDDAGROWN Corp. different from the WACC for IWOULDDAGROWN Corp.?

Please show formulas

Debt =	$500,000,000	50.00%
Preferred Stock =	$100,000,000	10.00%
Common Equity =	$400,000,000	40.00%
rd = required return on debt =	6.00%
T = Corporate Tax Rate =	25%
rps = Required Return on Preferred Stock =	5.25%;
rs = Required Return on Common Stock =	12%.
1. What is the WACC for IWOULDDAGROWN Corp.?		0.07575