Cha Cha Corporation has three long term loans (interest bearing debt): a loan of $100,000 at 6% interest, a loan of $100,000 at 8% interest, and a loan of $100,000 at 14% interest. The company has accounts payable of $50,000 (non-interest bearing) and equity of $200,000. It estimates that its cost of equity is 12%. Its tax rate is 35%.

38. What is Cha Cha Corporations weighted average cost of capital on interest bearing debt and equity?