(Answered) Scc inc has the following financial informationcurrent

Accounting

SCC Inc. has the following financial information:
Current liabilities            $900,000
Long-term debt              $1,300,000
Total liabilities                $2,200,000
Preferred shares            $3,500,000
Common equity              $6,200,000

The long-term debt consists of a single bond issue paying 6% interest annually. Thesebonds currently yield 7.5% in the market. The current cost of the preferred shares is8%. The current cost of the common shares is 12%. The company's tax rate is 40%. What is SCC Inc.'s weighted average cost of capital (rounded to the nearest tenth of apercent)?

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