5. Shi Importer's balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. Shi's tax rate is 40%, Ka-6 % , Kps 5.8% and Kc, preferred stock, and 65% common stock, what is its WACC? 12%. If Shi has a target capital structure of 30% debt, 5% 6. In the spring of last year, Tempe Steel learned that the firm would need to reevaluate the company's weight average cost of capital following a significant issue of debt. The firm now has financed 45 percent of its asset using debt and 55 percent using equity. Calculate the firm's weight average cost of capital where the firm borrowing rate on the debt is 8 percent, it faces a 40 percent tax rate, and a common stock holders require a 20 percent rate of return