You were hired as a consultant to ND Winter Skydiving Compan…
You were hired as a consultant to ND Winter Skydiving Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The interest rate on new debt is 8.00%, the yield on the preferred is 5.25%, the cost of retained earnings is 11.50%, and the tax rate is 30%. The firm will not be issuing any new stock. What is the company’s WACC? Round final answer to two decimal places. Do not round your intermediate calculations.