CoffeeStop primarily sells coffee. It recently introduced a premium coffee-flavored liquor (BF Liquors). Suppose the firm faces a tax rate of 35% and collects the following information. If it plans to finance 14% of the newliquor-focused division with debt and the rest with equity, what WACC should it use for its liquor division? Assume a cost of debt of 4.9%, a risk-free rate of 3.4%, and a market risk premium of 6.4%.

	Beta	% Equity	% Debt
CoffeeStop	0.62	94%	6%
BF Liquors	0.28	86%	14%

Note: Assume that the firm will always be able to utilize its full interest tax shield.

The weighted average cost of capital is ____%.

(Round to two decimal places.)