Giant Foods is trying to decide whether or not to buy Yummy Ice Cream. Yummy is currently financed with 35% debt and 65% equity. Giant Foods intends to finance the acquisition mainly with debt such that the debt/equity ratio will be 1:1. If Yummys current equity beta is 1.4 and the new cost of debt is expected to be 13%, what discount rate (WACC) should Giant Foods use to value the acquisition? Assume the risk-free rate is 3%, the corporate tax rate is 25% and the expected market risk premium is 6%.