Caspian Sea Drinks' is financed with 62.00% equity and the remainder in debt. They have 11.00-year, semi-annual pay, 5.94% coupon bonds which sell for 98.90% of par. Their stock currently has a market value of $24.18 and Mr. Bensen believes the market estimates that dividends will grow at 3.22% forever. Next years dividend is projected to be $2.77. Assuming a marginal tax rate of 26.00%, what is their WACC (weighted average cost of capital)?

4 decimal place answer.