The case of Cold Duck Brewing Company The CFO of Cold Duck Brewing Company is trying to determine the company's WACC. He has determined that the company's before-tax cost of debt is 11.10%. The company currently has $100,000 of debt, and the CFO believes that the book value of the company's debt is a good approximation for the market value of the company's debt. - The firm's cost of preferred stock is 12.20%, and the book value of preferred stock is $10,500. - Its cost of equity is 14.70%, and the company currently has $85,000 of common equity on its balance sheet. - The CFO has estimated that the firm's market value of preferred stock is $30,000, and the market value of its common equity is $140,000