Examine the following book-value balance sheet for University Products, Inc. Assets Cash and short-term securities $1 $10 3 Liabilities and Net Worth Bonds, coupon = 8%, paid annually (maturity = 10 years, current yield to maturity = 9%) Preferred stock (par value $20 per share) Common stock Retained earnings Total 2. Accounts receivable Inventories Plant and equipment Total 10 10 21 $32 $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. Bonds Preferred Stock Common Stock Total Dollars 9.36 million 1.50 million 20.00 million 30.86 million Percent 30.33% 4.86% 64.81% 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 %