The case of Purple Lemon Fruit Company The CFO of Purple Lemon Fruit 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. If Purple Lemon is subject to a tax rate of 40%, Purple Lemon Fruit Company's WACC is places.) The case of Purple Panda Products Purple Panda Products is considering a new project that will require an initial investment 6% preferred stock, and 36\% common equity. Purple Panda has noncallable bonds outst annual coupon rate of 11%, and a market price of $1,555.38. The yield on the company (Hint: Round your answer to two decimal 11.44% 7.44% 9.15% lion. It has a target capital structure of 58% debt, 8.58% mature in 15 years with a face value of $1,000, an onds is a good approximation of the yield on any