An all-equity company is considering borrowing $1,500,000 and using the borrowed funds to repurchase shares. The company has a cost of equity of 8.75%. EBIT is expected to be $450,000 every year forever. Assume all available earnings are immediately distributed to common shareholders and all the M&M assumptions are satisfied. If the company proceeds with the capital restructuring, what will be the company's WACC according to M&M Proposition I without taxes?

Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit the % sign in your response. For example, an answer of 15.39% should be entered as 15.39.