Ws - $150/5250 -0.6 Wps = $25/S250 = 0.1 Wd=$75/$250 =0.3 . Keep the preferred stock at 0.1 and reduce the weight on the stocks Please calculate the WACC if the weight of debt doubles the amount presented in the slides: 1. for the firm level WACC 2. for the division level WACC . . WACC = wid)r(d) (1-1) + WpsRps + WsRs = Vs = $50(3 million) = $150 million. Vps = $25 million. Va= $75 million. Total value = $150 + $25 + $75 = $250 million. = = Suppose the stock price is $50, there are 3 million shares of stock, the firm has $25 million of preferred stock, and $75 million of debt. Ws - $150/5250 -0.6 Wps = $25/S250 = 0.1 Wd=$75/$250 =0.3 . Keep the preferred stock at 0.1 and reduce the weight on the stocks Please calculate the WACC if the weight of debt doubles the amount presented in the slides: 1. for the firm level WACC 2. for the division level WACC . . WACC = wid)r(d) (1-1) + WpsRps + WsRs = Vs = $50(3 million) = $150 million. Vps = $25 million. Va= $75 million. Total value = $150 + $25 + $75 = $250 million. = = Suppose the stock price is $50, there are 3 million shares of stock, the firm has $25 million of preferred stock, and $75 million of debt