decimal places.) Consider the case of Purple Panda Products Purple Panda Products is considering a new project that will require an initial investment of $4 million. It has a target capital structure of 45 debt, 4% preferred stock, and 51% common equity. Purple Panda has noncallable bonds outstanding that mature in 15 years with a face v of $1,000, an annual coupon rate of 11%, and a market price of $1,555.38. The yield on the company's current bonds is a good approxima 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 $8 at a pr of $95.70 per share. Assume that Purple Panda new preferred shares can be sold without incurring flotation costs. Purple Panda does not have any retained earnings available to finance this project, so the firm will have to issue new common stock to hel fund it. Its common stock is currently selling for $22.35 per share, and it is expected to pay a dividend of $1.36 at the end of next year. Flotation costs will represent 8% of the funds raised by issuing new common stock. The company is projected to grow at a constant rote o 9.2%, and they face a tax rate of 40%. Purple Panda's WACC for this project will be: (Note: Round your answer to two decimal places.) 9.88% O 10.37% 10.87% 8.896 Grade It Now Save & Continu Continue without