10

1 points Save Scotty Corp. has an optimal capital structure that is 70% common stock, 20% debt, and 10% preferred. Scotty's cost of equity is 12%. Its pretax cost of preferred stock is 7%, and its pretax cost of debt is also 5%. If the firm's tax rate is 21%, what is Scotty's WACC? Between 7% and 8% Between 9% and 10% Between 8% and 9% Between 10% and 12%