5. Capital structure weights Taylor Inc. has the following abridged balance sheet: Current assets $ 3.600 Debt $ 5,200 Preferred stock $ 600 Fixed assets $ 6,400 Common equity $ 4,200 Total assets $ 10,000 Total liabilities and equity $ 10,000 The market value of Taylor?s debt, preferred stock, and common equity equals its book value. Taylor?s cost of debt is 9.0%, its cost of preferred stock is 7.7%, and its cost of common equity is 15.2%. If Taylor?s tax rate is 35%, what is the firm?s WACC? 9.80% 10.49% 9.65% 9.97 % 9.89%