As a new Investment Analyst, you are asked to estimate the weighted average cost of capital (WACC) for BlackCompany. Black has a capital structure with 55% debt and 45% equity, a corporate tax rate of 26%, a current market price of stock of P₀ = $22.50, a current dividend per share of D₀ = $2.00, an estimated growth rate of g = 5%, thus dividends next year are D₁ = $2.00(1.05) = $2.10. If new debt costs 6%, what is the WACC for Black Company?

r_s = + g =

WACC =