NatNah, a builder of acoustic accessories, has no debt and an equity cost of capital of

15 %15%.

Suppose NatNah decides to increase its leverage to maintain a market debt-to-value ratio of

0.60.6.

Suppose its debt cost of capital is

7 %7%

and its corporate tax rate is

39 %39%.

If NatNah's pre-tax WACC remains constant, what will be its (effective after-tax) WACC with the increase in leverage?

The effective after-tax WACC will be

14.9814.98%.

(Round to two decimal places.)