Daves Inc. recently hired you as a consultant to estimate the companys WACC. You have obtained the following information. (1) The firm's noncallable bonds have a yield to maturity of 8%. (2) The companys tax rate is 40%. (3) The risk-free rate is 4.50%, the market risk premium is 5.50%, and the stocks beta is 1.20. (4) Its capital structure includes $40 million debt and $10 million common equity. The firm uses the CAPM to estimate the cost of equity. What is its WACC based on book value?