Given the following data for Water's Beginning firm:

1 million shares of common stock outstanding: price $12 per share.

The firm's outstanding bonds have ten years to maturity, a total

face value of debt = $5 million, face value per bond of $1,000,

current price = $985 with a coupon rate of 10%. Interest is paid annually. Yield to maturity of the bond id 10.25%

The risk-free rate is 7%, and analysts' expected return for the market is 14%.

Water's Beginning stock has a beta of 1.2 and is in the 34% marginal tax bracket.

Whats the WACC? (Use market value proportions for calculations)