QUESTION 9 Edisto Bank has an optimal capital structure that is 70% common equity, 20% debt, and 10% preferred stock. The pretax cost of equity is 5%, the pretax cost of preferred equity is 7%, and the pretax cost of debt is 6%. If the corporate tax rate is 30%, what is the average cost of capital? SHOW YOUR ANSWER AS A PERCENTAGE, ROUNDED TO 1 DECIMAL PLACE (DO NOT INCLUDE THE \& SIGN)