Digital Fruit is financed solely by common stock and has outstanding 27 million shares with a market price of $10 a share. It now announces that it intends to issue $180 million of debt and to use the money to buy back common stock at the current stock price.

Suppose the tax rate is 21%. The debt yields 8% and the required return on equity is 14%. What is the weighted average cost of capital (WACC) for the firm?