The basic WACC equation The calculation of a weighted average cost of capital (WACC) involves… 1 answer below »

The basic WACC equation

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The calculation of a weighted average cost of capital (WACC) involves calculating the weighted average of the required rates of return on debt and equity, where the weights equal the percentage of each type of financing in the firm’s overall capital structure.

what is the symbol that represents the cost of preferred stock in the weighted average cost of capital (WACC) equation.__________

 

Bob Co. has $1.26 million of debt, $3.16 million of preferred stock, and $2.02 million of common equity. The appropriate weight of the firm's preferred stock in the calculation of the company's weighted average cost of capital is____________%   .