Given the following information, calculate Schneider Manufacturing's weighted average cost of capital (WACC). Schneider plans to invest $500 million to construct a new manufacturing facility to produce protective cases for cell phones. The capital necessary to build the facility will be made up of 60 percent common equity, 30 percent debt, and 10 percent preferred stock. The firms before-tax cost of debt is 8 percent, the cost of common equity is 15 percent, and the cost of preferred stock is 10 percent. The appropriate tax rate is 30 percent.

Group of answer choices

9.88 percent

9.24 percent

10.74 percent

None of these are correct.

11.68 percent