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Edwards Resorts has a current capital structure that is 50% equity, 40% debt, and 10% preferred stock

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Edwards Resorts has a current capital structure that is 50% equity, 40% debt, and 10% preferred stock. This is considered optimal in the capital structure. Edward is considering a $40 million capital budgeting project. Edward has estimated the following: - After-tax cost of debt: 8.5% - Cost of preferred stock: 9.5% - Cost of internal equity: 14.0% If all equity comes from internal sources, what should Edward's weighted average cost of capital (WACC) be for this project? 10.6796 11.35% 9.45% 12.15%