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 cost of equity is 10%. (4) The company stock price is $10 per share with 20 million shares outstanding. (5) The current bond price is $800 and there are 1 million units of bonds issued (6) No preferred equity in the capital structure. What is the firms WACC based on market value?

WACC= Wd*Rd(1-T)+ Rp*Wp+ Rc*Wc