300M Par Val, 5% paid Semi-Ann Matunty = 6 yrs, YTM = 4% Pref Common 10M shares, D1 = 4.50 25M shares, Po = 35.00, Po = 52.57 Do = 2.00, G = 5% Par Value / share = 50,00 B = 1.50, RF = 25%, ERM -RF=56% T = 35% What is WACC? Step 1 Calculate Cost of Capital RE