Pharoah Industries has 8 percent coupon bonds outstanding. These bonds have a market price of $954.41, pay interest semiannually, and will mature in 6 years. The tax rate is 35 percent. The common stock of Pharoah Industries has a beta of 1.6 and the market risk-free rate is 4 percent and the expected return on the market is 9 percent. In addition to common stock, Pharoah has 550,000 preferred shares outstanding that pay a quarterly dividend of $0.8 per share and are currently trading for $20 a share. The companys outstanding bonds have a face value of $258,798,630. There are 2.50 million shares of common stock outstanding with a current market price of $98 per share. Compute the WACC for Pharoah Industries. (Round intermediate calculation to 4 decimal places, e.g. 15,1253 and round final answer to 2 decimal places, e.g. 15.25%.

WACC ? %