arcia Company has no debt. Its cost of capital is

$10\mathrm{.}6$

$$percent$.$ Suppose the company converts to a debt

$-$

equity ratio of

$1.$

$$The interest rate on the debt is

$7\mathrm{.}7$

$$percent$.$ Ignore taxes for this problem. What is its new WACC? THE ANSWER IS NOT

$10\mathrm{.}60$

Note: Do not round intermediate calculations and enter your answer as a percent rounded to

$2$

$$decimal places,