Megamundy, Inc. has an optimal capital structure of 40% debt and 60% equity. The firm's bonds, which have a $1000 par value, a coupon rate of 6.4% (semi-annual payments), and mature in 26 years, currently trade in the bond market for $816 75 Megamundy's common stock sells for $45.94 per share. The company's stock has a beta of 115, the expected return on the market portfolio (Rm) is 16%, and the risk-free rate (RT) is 5% Megamundy's marginal tax rate is 30% Based on this information, the weighted average cost of capital (WACC) for Megamundy, Inc. is