Calculate WACC The Weighted Average Cost of Capital is sometimes called the Opportunity Cost of Capital because there is a cost of using financing. Calculate the opportunity cost of capital for a firm with the following capital structure: 30% preferred stock, 50% common stock and 20% debt.The firms has a cost of debt of 7.05%, a cost of preferred stock equal to 10.22% and a 14.29% cost of common stock. The firm has a 27% tax rate. You answer should be entered as a %, for example 15.48% QUESTION 10 Calculating the Cost of Equity Capital and the WACC In this problem, you first need to calculate the cost of equity using the DCF approach. Then use the rest of the information to find the WACC: Dashy-Paints Corporation has a target capital structure of 45% debt, 15% preferred stock, and 40% common stock. Its before-tax cost of debt is 8%, preferred stock cost is 9.5%, and its marginal tax rate is 40%. The current stock price is $22.00. The last dividend was at 2.25, and is expected to grow at a 5% constant rate. What is the firm's WACC? 11.32% 8.72% 12.04% 9.88%