Assume that you are on the financial staff of Magee Enterprises, and you have collected the following data: (1) The yield to maturity on the companys outstanding 6% annual coupon bonds is 4%, and its tax rate is 25%. (2) The risk-free rate is 3%, the market risk premium (rM rRF) is 5%, and the firms beta is 0.80. (3) The firms capital structure consists of 40% debt and 60% equity. What is Magees WACC?