Examine the following book-value balance sheet for University Products, Inc.

Assets			Liabilities and Net Worth
Cash and short-term securities	$	1	Bonds, coupon = 8%, paid annually (maturity = 10 years, current yield to maturity = 9%)	$	10
Accounts receivable		3	Preferred stock (par value $20 per share)		2
Inventories		7	Common stock		10
Plant and equipment		21	Retained earnings		10
Total	$	32	Total	$	32

The preferred stock currently sells for $15 per share and the common stock for $20 per share. There are one million common shares outstanding.

	Dollars	Percent
Bonds	9.36 million	30.33	%
Preferred Stock	1.50 million	4.86	%
Common Stock	20.00 million	64.81	%
Total	30.86 million	100.00	%

If the preferred stock pays a dividend of $2 per share, the beta of the common stock is 1.5, the market risk premium is 7%, the risk-free rate is 4%, and the firm's tax rate is 40%, what is University's weighted-average cost of capital? (Round your answer to 2 decimal places.)

WACC %