Note: if there is no allocation to preferred stocks, you can ignore the component from preferred stocks. tax rate Amount % weight before-tax cost after-tax cost cost component after-tax cost % weight weighted average cost of capital (WACC) 9% Firm 2,394,319,260.00 2,394,150,000.00 Debt Equity 169,260.00 Preferred 0.00 99.99% 0.01% 4.09% 7.49% 0.00% 66551.72% 0.04 0.07 665.52 0.04 0.00 0.00 3.71% 8-1 Weighted average cost of capital What does the WACC mean? 2) The average return required by the capital providers