Book value debt S3 million Preferred stock is selling for S100/share and there are 10,000 shares out Common stock is selling for $20/share and there are 300,000 shares out Target capital structure (market value) B-3090 P-10% s 60% Return on debt-9% Return on Preferred-8% Return on Equity 13.1% Tax rte-4090 Pharmacia has $200 million worth of equity and S600 million worth of debt on its balance sheet. The market value of the equity is $650 million, and the market value of the debt is $975 million. The corporate tax rate is 34%. What is the WACC for Pharmacia