17. Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. (1) The firm's noncallable bonds have a yield to maturity of 8%. (2) The company's tax rate is 40%. (3) The risk-free rate is 4.50%, the market risk premium is 5.50%, and the stock's beta is 1.20. The firm uses the CAPM to estimate the cost of equity. (4) The target capital structure consists of $40 million debt and $10 million common equity. (5) No preferred equity in the capital structure. What is the firm's WACC? (14 points, again, please show all your work to earn partial credit)