SCC Inc. has the following financial information:
January 6th, 2018
SCC Inc. has the following financial information:Current liabilities $900,000Long-term debt $1,300,000Total liabilities $2,200,000Preferred shares $3,500,000Common equity $6,200,000The 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)?