hart he WACC at Winnipeg Electric The following are financial data for Winnipeg Electric Company Debt 1,500. 6.80% coupon bonds outstanding: par value CAD 1,000: 10 years to maturity: current bond quotation of 105.32 Common shares 65,000 shares outstanding: selling for CAD 38.00 per share; beta is 0.78 Preferred 5,000 preferred shares in circulation; annual dividend of shares CAD 4.00; selling for CAD 80.00 per share Market data 4.0% risk-free rate: 5.0% market risk premium Tax rate 30.0% The company does not have a formal target capital structure and policy is not to include issuance costs in the cost of capital, REQUIRED: 1. Calculate Winnipeg Electric's WACC. 2. Why should the company have a target capital structure? nike