A firm has three debt sources: a $1.8 million limit from First Bank with an interest rate of 7%, a $2 million with Second Bank with an interest rate of 8%, and a bond issue at a yield (already adjusted for floatation costs) of 9.5%. the firm's preferred shares have costs of 12%, the retained earnings ($2,500,000 available) has a cost of 13%, and the new common shares will cost 14%. Determine the second WACC level. The firm uses 40% debt, 10% preferred equity, and 50% common equity, and the tax rate is 40%.