Assume that you are on the financial staff of Michelson Inc., and you have collected the following data: The yield on the company's outstanding bonds is 8.00%, and its tax rate is 40%. The next expected dividend (D_1) is $0.65 a share, The price of Michelson's stock is $17.50 per share. The target capital structure is 45% debt and the balance is common equity. What is Michelson's WACC, assuming it will use retained earnings to finance its capital budget