Daves Inc. recently hired you as a consultant to estimate the company's WACC.You have obtained the following information.(1) The firm's noncallable bonds have a yield to maturity of 8%.(2) The company's tax rate is 40%.(3) The risk-free rate is 4.50%, the market risk premium is 5.50%, and the stock's 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?