recalculate WACC using formula given: WACC = E/V rE + P/V rP + D/V rD (1 – TC)

Sure, I can help you recalculate the Weighted Average Cost of Capital (WACC) using the given formula. Here are the steps:

1. Identify the values for E, P, D, rE, rP, rD, TC, and V. These represent the following:

   • E: Market value of equity
   • P: Market value of preferred stock
   • D: Market value of debt
   • rE: Cost of equity
   • rP: Cost of preferred stock
   • rD: Cost of debt
   • TC: Corporate tax rate
   • V: Total market value of the firm's equity, preferred stock, and debt (E + P + D)

2. Calculate the proportion of financing that each component (equity, preferred stock, and debt) contributes to the firm's total financing. This is done by dividing the market value of each component by the total market value (V). For example, the proportion of financing from equity is E/V, from preferred stock is P/V, and from debt is D/V.

3. Multiply the cost of each component by its respective proportion of total financing. For example, the weighted cost of equity is (E/V) * rE, the weighted cost of preferred stock is (P/V) * rP, and the weighted cost of debt is (D/V) * rD * (1 – TC). The (1 – TC) term accounts for the tax shield provided by interest expense.

4. Sum up these weighted costs to get the WACC. So, WACC = (E/V) * rE + (P/V) * rP + (D/V) * rD * (1 – TC).

Remember, the WACC represents the average rate that a company is expected to pay to finance its assets. It is the minimum return that a company must earn on its existing asset base to satisfy its creditors, owners, and other providers of capital.