Riddle Industries has the following capital structure. Its corporate tax rate is 21 percent. Book Market Required Rate of Capital Structure Components Value Value Return Bank Interest rate of 7% $20 mln Loan Bonds Matures in 25 years, Coupon rate of 8% paid annually, current YTM is 9%. $50 mln Preferred 1 mln shares; preferred Stock dividends are $4 per share $42 min Common 10 mln shares; Next year dividends are $1.40 per share; expected dividend growth rate is 3% per year. $140 mln Stock (Hint: Book value of debt is a face value of 50,000 corporate bonds) What is the WACC for Riddle Industries? 10.73% 10.59% 12.3% 10.98%