Blues, Inc., is an MNC located in the United States. Blues would like to estimate its weighted average cost of capital (WACC). On average, bonds issued by Blues yield 12 percent. Currently, Treasury security rates are 4 percent. Furthermore, Blues' stock has a beta of 1.7, and the return on the Wilshire 5000 stock index is expected to be 11 percent. Blues' target capital structure is 20 percent debt and 80 percent equity. If Blues is in the 35 percent tax bracket, what is its weighted average cost of capital? Do not round intermediate calculations. Round your answer to two decimal places.