A company fnances its operations with 40 percent debt and60 percent equity. Its net income is I = $16 million and it has a dividendpayout ratio of x = 25%. Its capital budget is B = $15 million this year.The annual yield on the company.s debt is rd = 10% and the company.s taxrate is T = 30%. The company.s common stock trades at P0 = $55 per share, and itscurrent dividend of D0 = $5 per share is expected to grow at a constant rateof g = 10% a year. The flotation cost of external equity, if it is issued, isF = 5% of the dollar amount issued. What is the company.s WACC?