Please show detailed steps (:

The case of Blue Sky Drone Company Blue Sky Drone Company is considering a new project that will require an initial investment of $20 million. It has a target capital structure of 45% debt, 4% preferred stock, and 51% common equity. Blue Sky Drone has noncallable bonds outstanding that mature in five year $1,000, an annual coupon rate of 10%, and a market price of $1,050.76. The yield on the company's current bonds is a good approximation of the share. Assume that Blue Sky Drone new preferred shares can be sold without incurring flotation costs. Blue Sky Drone does not have any retained earnings available to finance this project, so the firm will have to issue new common stock to help Its common stock is currently selling for $33.35 per share, and it is expected to pay a dividend of $1.36 at the end of represent 8% of the funds raised by issuing new common stock. The company is projected to grow at a constant rate of 8.7%, and they face ax rate of 40%. Blue Sky Drone's WACC for this project will be: (Hint: Round your answer to two decimal places.) 11.33% 8.50%9.91% 9.44%