WACC= k= (WT, X AT kq) + (WT, kp) + (WT, x ks) Assuming the corporation uses retained earnings: WACC= ka= (WT, x 6% ) + (WT. X 11.9% ) + (WT. X 15%) If Gallagher uses 70% debt, 10% preferred stock and 20% common equity, the WACC = a. 11.09% b. 8.39% c. 9.88% d. 10.97% Back