For the following questions, please make these assumptions:

• The 10-Year Treasury is yielding 3.00%
• The Equity Risk Premium is 5.00%
• Bonds trade at a premium to the risk-free rate of return as follows:

Rating	Premium Over Treasuries
AAA	0.4%
AA	0.6%
A	1.0%
BBB	1.2%
BB	1.4%
B	1.7%
C	2.0%

Pfizer is a maker of pharmaceuticals. It has a market capitalization of $240 billion and outstanding debts of $74 billion. Its beta is 0.96. Its debt is rated A. Its tax rate is 30%.

Given this information, what is the WACC, rounded to the nearest tenth of one percent?