Gumdrop LTD has $10 Million (face value) of 20-year bonds outstanding. Each \ $1,000 bond carries a 6% coupon, paid semi-annually, and is currently selling in \ the market for $925. They also have 4 Million common shares outstanding. The \ shares just paid a dividend of $2.50. The current yield on Treasury Bills is 3% and \ the return on the market 12%. Gumdrop has a Beta of 2, an ROE of 14%, a 30% \ tax rate and a payout ratio of 60%. What is Gumdrops WACC?