2. Quantitative Problem: Currently, Meyers Manufacturing Enterprises (MME) has a capital structure consisting of 35% debt and 65% equity. MME's debt currently has a 7% yield to maturity. The risk-free rate (r_RF) is 5%, and the market risk premium (r_M r_RF) is 6%. Using the CAPM, MME estimates that its cost of equity is currently 11.3%. The company has a 40% tax rate.

What would be the company's new WACC if it adopted the proposed change in capital structure? Round your answer to 2 decimal places. Do not round intermediate calculations.