131 Ramblin Wreck is a firm specializing in engineering components. The firm is publicly traded and is considering the following project The project will last 5.00 years with an annual cash flow of $40.00 million. The project will require an initial investment or $140.00 million The firm must determine the cost of capital to evaluate the project. The project is within the firm's normal activities) Ramblin Wreck, Inc. Financial Data: STOCK DATA: BOND DATA: Current Price Per Share $27.00 Current Price Per Bond $924.00 # of Shares 2.00 million #of bonds 20.000.00 Book Value $50 million Annual Coupon Rate 9.00% Face Value Per Bond $1,000 Maturity 10 years The risk free rate in the economy is currently 2.00%, while investors have a market risk premium of 7.00% Ramblin Wreck, Inc has a beta of 1.44 The tax rate is 39.00% What is the WACC for the project? Submit Answer format: Percentage Round fo. 2 decimal places (Example: 9.24%, % sign required Will accept decimal format rounded to 4 decimal places (ex 0.0924)