Blue Shoes Inc. has 2,000 shares outstanding, currently trading at $26.50 per share. The book value of its debt amounts to $22,500, but the debt trades at 20% above its book value. The risk-free rate is 0.50%, the market risk premium is 5.50% and the unlevered beta amounts to 1.50. What is Blue Shoes Inc.’s weighted average cost of capital (WACC)? You can assume a pre-tax cost of debt of 4%and a tax rate of 30%.