Question $1$

The target capital structure of the company $xYZ$ is:

$30\%$ Debt

$5\%$ Preferred Stock

$65\%$ Equity

The followings are the costs of each component:

$rd=6\%$;$rps=5\mathrm{.}8\%$;$rs=12\%.$

The tax rate is : $T=40\%$;

What is the WACC of XYZ$?$