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 8.70\%. The company currently has $230,000 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 9.90%, and the book value of preferred stock is $16,000. - Its cost of equity is 13.20%, and the company currently has $210,000 of common equity on its balance sheet. - The CFO has estimated that the firm's market value of preferred stock is $20,000, and the market value of its common equity is $320,000 If Purple Lemon is subject to a tax rate of 40%, Purple Lemon Fruit Company's WACC is - (Hint: Round your answer to two decimal places.)