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The case of Red Snail Satellite Company Red Snail Satelte Company is considering a new project that will require an initial investment of $20 million. It has a target capital structure of 45% debt, 4% preferred stock, and 51% common equity, Red Snal Satellite has noncaltable bonds outstanding that mature in five years with a face value of $1,000, an annual coupon rate of 10%, and a market price of $1,050.76. The yield on the company's current bonds is a good approximation of the yield on any new bonds that it issues. The company can sell new shares of preferred stock that pay an annual dividend of 9 at a price of $92.25 per share. Assume that Red Snal Satelite new preferred shares can be sold without incurring flotation costs. Red Snart Satellte does not have any retained earnings available to finance this project, so the firm will have to issue new common stock to help fund it. Its common stock is currently selling for $33.35 per share, and it is expected to pay a dividend of $1.36 at the end of next year. Totation costs will represent 8% of the funds raised by issuing new common stock. The company's projected to grow at a constant rate of 8.7%, and they face a tax rate of 40% Red Sna Satellite's WACC for this project will be: (Hint: Round your answer to two deamal places.) O 7.55% 10.39% O 10.8696 9.44%

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