10. Nu Inc., is a multinational corporation located in the United States. Nu would like to estimate its weighted average cost of capital (WACC). On average, bonds issued by Nu yield 10 percent. Currently, Treasury security rates are 3 percent. Furthermore, Nus stock has a beta of 1.3, and the market return is expected to be 12 percent. Nus target capital structure is 40 percent debt and 60 percent equity. If Nu is in the 40 percent tax bracket, what is its weighted average cost of capital?