Consider the case of Purple Lemon Shipbuilders The CFO of Purple Lemon Shipbuilders is trying to determine the company's WACC. He has determined that the company's before-tax cost of debt is 10.20%. The company currently has $750,000 of debt, and the CFO believes that the book value of the company's debt is a good approximation for the market value of the company's debt. The firm's cost of preferred stock is 11.40%, and the book value of preferred stock is $45,000. Its cost of equity is 14.30%, and the company currently has $500,000 of common equity on its balance sheet. The CFO has estimated that the firm's market value of preferred stock is $78,000, and the market value of its common equity is $180,000 of Purple Lemon is subject to a tax rate of 40%. Purple Lemon Shipbuilders's WACC is . (Note: Round your answer to two decimal places.) 6.88% Consider the case of Red Snail Satellite Company 12.17% Red Snail Satellite Company is considering a new project that will require an initial in 10.05% $20 million. It has a target capital structure of 45% debt, 4% preferred stock, and 51% common equity. Red Snail Satellite has non is outstanding that mature in 15 years with a 10.58% face value of $1,000, an annual coupon rate of 11%, and a market price of $1,555.38. bn the company's current bonds is a good