ABC Corporation is contemplating whether to make a takeover bid for Tower Corporation. Tower currently has $15 million of debt at 6%, and the market value of its equity is $35 million. Tower's tax rate is 35%. The following financial information, which includes all synergies, has been forecast for Tower Corporation if the acquisition takes place. Tower's long term growth rate is expected to be 4% per year.

Dec.31, 2015 Dec.31, 2016 Dec.31, 17 Dec.31, 18 Dec.31, 19 Dec.31, 20

Sales $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000

Cost of Goods Sold 6,000,000 7,600,000 9,600,000 11,600,000 13,600,000

Selling and admin 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000

Depreciation 2,000,000 2,500,000 3,000,000 3,000,000 3,000,000

Interest expense 1,700,000 1,800,000 1,900,000 2,000,000 2,100,000

Debt $24,000,000 25,000,000 27,200,000 28,900,000 30,500,000 31,700,000

Operating current assets 4,000,000 4,000,000 4,500,000 5,000,000 5,500,000 6,000,000

Operating long-term assets 40,000,000 42,000,000 45,000,000 48,000,000 52,000,000 56,000,000

Operating current liabilities 3,000,000 3,000,000 4,500,000 5,000,000 5,500,000 6,000,000

Additional market information is shown below:

Risk free rate is 3%.

Market risk premium is 5%.

Tower's stock beta is 1.5.

Tower Corporation has 5 million shares outstanding

Required:

Determine the Weighted Average Cost of Capital (WACC)

Please express your answer to 2 decimal places (i.e. 10.15%)