Trevor Drinville 1) Shi Importer's balance sheet shows $300 million in debt, $200 million in preferred stock, and $500 million in total common equity. The tax rate is 35%, the before tax return on debt is 8%, preferred stock costs the company 7%, and the risk-free rate of return is 6%, the average stock is expected to earn 16%, and the company's beta is 1.4. The target capital structure is 35% debt, 10% preferred stock, and 55% common equity. What is its WACC? 300 + 200 +500 Wack- Debte 30% Porock a 20% Ley= 50%