The case of Red Oyster Seafood Company The CFO of Red Oyster Seafood 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 $750,000 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 $45,000. Its cost of equity is 14.70%, and the company currently has $500,000 of common equity on its balance sheet. The CFO has estimated that the firm's market value of preferred stock is $78,000, and the market value of its common equity is $880,000. If Red Oyster is subject to a tax rate of 40%, Red Oyster Seafood Company's WACC is places.) . (Hint: Round your answer to two decimal