A firm has a lender lined up to provide funding. Bank A charges an interest rate of 8% with a $450,000 limit. Bonds could also be issued at a 10% yield. The firm has 435,000 of available retained earnings at a cost of 11.6%. Preferred stock can be issued at 11% and new common shares can be issued at 12%. If the tax rate is 41%, determine the second WACC in the MCC schedule. (capital structure: 40% debt, 10% preferred, and 50% common equity)