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Consider the case of Cold Duck Brewing Company The CFO of Cold Duck Brewing Company...

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Consider the case of Cold Duck Brewing Company The CFO of Cold Duck Brewing Company is trying to determine the company's WACC. He has determined that the company's before-tax cost of debt is 8.70%. The company currently has $230,000 of debt, and the CFO believes that the book value of the company's debt is a good approadmation for the market value of the company's debt. . The firm's cost of preferred stock is 9.90%, and the book value of preferred stock is $16,000. . Its cost of equity is 13.20%, and the company currently has $210,000 of common equity on its balance sheet. The CFO has estimated that the firm's market value of preferred stock is $20,000, and the market value of its common equity is $320,000 If Cold Duck is subject to a tax rate of 40%, Cold Duck Brewing Company's WACC is places.) (Note: Round your answer to two decimal

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