9. Calculating WACC (LO4) Peacock Corporation has a target capital structure of 70% common stock, 5% preferred stock, and 25% debt. Its cost of equity is 11%, the cost of preferred stock is 5%, and the cost of debt is 7%. The relevant tax rate is 35%. a. What is Peacock's WACC? b. The company president has approached you about Peacock's capital structure. He wants to know why the company doesn't use more preferred stock financing because it costs less than debt. What would you tell the president? 10. Taxes and WACC (LO4) Iron Springs Manufacturing has a target debt-equity ratio of .35. Its cost of equity is 12% and its