4.2 Old Bie Co has 40% debt financing and 60% equity financing. The company's beta is 1.2 and the risk. free rate is 2%. The market premium is 10%. The cost of debt is 5% and the corporate tax rate is 35%. Calculate the company's WACC TE If the company issued 5100 million preferred shares at a dividend yield of 10%. The proceeds from issuing preferred shares would be used to repurchase and retire common stock. The preferred issue would account for 15% of the pre-issue market value of the firm. After the issuance, the company's beta rises to 1.4. Calculate the new WACC. tortarted 50,6E hd 15% / 2107