JB Deere Company has a capital structure consisting of 50% debt and 50% common stock. The companys CFO has obtained the following information:

The before-tax YTM on the companys bonds is 8%.

The companys common stock is expected to pay a $3.00 dividend at year end (D1 = $3.00), and the dividend is expected to grow at a constant rate of 7% a year.

The common stock currently sells for $60 a share. The companys tax rate is 40%.

What is the companys WACC?