Laser Fun Ltd. is a laser quest company that operates over 10 facilities. The company has been listed for 20 years and over the past five years started to report that it is targeting a debt ratio of 50%. Over the past five years however, the debt ratio has never fallen below 80% with no concrete indications or looming equity issues on the horizon. The company has a cost of equity of 10% and an after-tax cost of debt of 8%.

What would you estimate the weighted average cost of capital (WACC) of the company to be? Substantiate your answer briefly