Georgia Dog Inc. typically uses equity as their main source of funding and typically only finances with 20% debt. The firm's before-tax cost of debt has been estimated to be 10% while their before-tax cost of equity is estimated at 22%. If the firm faces a 40% tax rate, what is their WACC? (6)

Georgia Dog Inc. typically uses equity as their main source of funding and typically only finances with 20% debt. The firm's before-tax cost of debt has been estimated to be 10% while their before-tax cost of equity is estimated at 22%. If the firm faces a 40% tax rate, what is their WACC? (6)