Copernicus Inc. has determined that its target capital structure will
be 60% debt, 10% preferred stock, and 30% common stock.  As the
financial manager, the CFO has informed you that the company's before
tax cost of debt is 10%, preferred stock is 14%, and common stock is
16%.  In addition, the company's marginal tax rate is 40%.  based on
the information provided, calculate the weighted average cost of
capital (WACC).

WACC = (1-Tax_c)*(D/V)*r_debt + (E/V)*r_equity + (P/V)*r_preferred =
     = (1-0.40)*0.60*0.10 + 0.30*0.16 + 0.10*0.14 =
     = 0.036 + 0.048 + 0.014 =
     = 0.098 =
     = 9.80%

The WACC is 9.8%

Thanks