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Given the following components for WACC from Wisconsin Electric Power public utility rate case from 1983, please calculate the WACC (ignore the after-tax calculation of

Given the following components for WACC from Wisconsin Electric Power public utility rate case from 1983, please calculate the WACC (ignore the after-tax calculation of the debt cost of capital)?

Capitalization Ratios Cost of Capital

Common Equity 48% 14.8%

Preferred Stock 11% 8.1%

Long-term Debt 41% 8.3%

How does a higher beta affect WACC and why?

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