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 12 % 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 4.9%a risk-free rate of 2.6 % ,and a market risk premium of 6.4 %,

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

	Beta	% Equity	% Debt
Coffee Shop	0.59	96%	4%
BF Liquore	0.27	88%	12%

The weighted average cost of capital is __________(Round to two decimal places.)