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 10 % of the new liquor-focused division with debt and the rest with equity, what WACC should it use for its liquor division? Assume a cost of debt of 4.8 %, a risk-free rate of 3.9 %, and a market risk premium of 5.8 %. Beta % Equity % Debt CoffeeStop 0.63 95 % 5 % BF Liquors 0.26 90 % 10 % 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.)