$2.$ DEC Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. $(1)$ The firm's bonds have YTM of $10\%.(2)$ The company$$s tax rate is $30\%.(3)$ The risk$-$free rate is $3\mathrm{.}5\%,$ the market risk premium is $5\mathrm{.}5\%,$ and the stock$$s beta is $1\mathrm{.}35.(4)$ The target capital structure has a debt$-$to$-$equity ratio equals to $1\mathrm{.}25.$ The firm uses the CAPM to estimate the cost of common stock, and it does not expect to issue any new shares. What is its WACC?