Chapter $12$: WACC

A pet supply store is considering a new investment project. They estimate a cost of equity

of $12\mathrm{.}5\%,$ the yield to maturity on their outstanding bonds is $5\mathrm{.}6\%.$ The corporate tax rate

is $21\%.$ The company's debt$-$to$-$equity ratio is $0\mathrm{.}8.$ What is the company's weighted

average cost of capital $($WACC$)?$

Do not round intermediate steps.

Note: Enter your number with THREE decimals and without the percentage. That is$,$ if

your answer is $20\mathrm{.}28\%,$ enter $\mathrm{.}203.$