q5. In 2021, Reneta currently has five debt issues outstanding. The value of the first debt is $…

q5. In 2021, Reneta currently has five debt issues outstanding. The value of the first debt is $ 0.1 billion, the second debt is $100 million, the third debt 74 million, the fourth debt 200 million, and the fifth debt is $100 million. Renata also has preferred stock. Reneta’s common stock and preferred stock are equally distributed, and Reneta always maintains this ratio. The weighted average cost of debt is 5.5 percent. For common stock, the company’s estimated beta is 90. Treasury bills currently yield 4.5 percent, and the market risk premium is assumed to be 7.94 percent. The company’s preferred shares dividend is $8, and its preferred share price is $100. Renata always maintains an equal debt-equity ratio. With an applicable tax rate of 30%, calculate the weighted average cost of capital (WACC) for Reneta. Show detailed calculation. Kindly note that you must show a detailed calculation process. (don’t use excel)