ABC Inc. has a the capital structure shown below. Liabilities Stockholders' Equity $113 million $100 million ABC Inc. will raise additional capital for new projects this year, in the amount of $44 million. The firm believes, however, that a capital structure with 57.8% of debt is ideal and will seek to implement that change when they raise capital. Currently, the firm has a beta of 1.2. The risk-free rate is at 2.9%, and the market risk premium is currently 8%. The company will issue bonds with a par value of $1,000. The bonds will sold with coupon payments of $40, each paid on a semi-annual basis. They will be sold at par and have a maturity of 12 years. ABC Inc. expects to pay 4% on their state taxes, and 21% on their federal taxes. What should the firm estimate as its new weighted average cost of capital? Do not round any intermediate calculations. Report it as a whole number and round your answer to two decimal points. For example, if your answer is 17.857321%, you would type in 17.86 as your answer.