My balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity, my tax rate is 40%, rd = 6%, rps = 5.8%, and rs =12%, If I have a target capital structure of 30% debt, 5% preferred stock, and 65% common stock, what is my WACC? Solution rd=6%*(1-.4)=3.6% rps=5.8% Rs=12% 9.17% WACC =9.17%rate of Intrest% AllocationA*B3.60%30%0.01080.065%0.002912%65%0.078 9.17% WACC =9.17%.