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5. Shi Importers balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in common equity. Shis tax rate is

5. Shi Importers balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in common equity. Shis tax rate is 40%. The interest rate Shi pays on its debt is 6%. The cost of preferred stock is 5.8% and the cost of common equity is 12%.

a. What is the companys WACC?

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