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Company A's balance sheet shows $400 million in debt, $75 million in preferred stock, and $325 million in total common equity. Company As tax rate

Company A's balance sheet shows $400 million in debt, $75 million in preferred stock, and $325 million in total common equity. Company As tax rate is 30%, rd = 7%, rps = 6.2%, and rs = 15%. If A has a target capital structure of 35% debt, 10% preferred stock, and 55% common stock, what is Company A's WACC?

Company B's balance sheet shows $100 million in debt, $10 million in preferred stock, and $90 million in total common equity. Company Bs tax rate is 27%, rd = 5%, rps = 3.4%, and rs = 9%. If B has a target capital structure of 25% debt, 5% preferred stock, and 70% common stock, what is Company B's WACC?

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