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Jon Stark ,Inc. Has estimated the costs of debt and equity capital for various proportions of debt in its capital structure. % of Debt Cost

Jon Stark ,Inc. Has estimated the costs of debt and equity capital for various proportions of debt in its capital structure.

% of Debt

Cost of Debt

Cost of Equity

0%

-

13.0%

10%

5.4%

13.3

20%

5.6

13.8

30%

5.8

14.4

40%

6.3

15.2

50%

7.0

16.0

60%

8.2

17.0

Based on these estimates, determine the WACC of Jon Starks optimal capital structure. Answers should be rounded off to 4 decimal places.

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