3. ABC Inc. recently is doing the following financing: (1) The firm's non-callable bonds mature in 20 years, have an 8.00% Yield to Maturity. (2) The company's tax rate is 25%. (3) The risk-free rate is 3%, the market return is 12%, and the stock's beta is 1.20. (4) The target capital structure consists of an equity-to-debt ratio of 2.25. 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