Problem 13-17 Calculating WACC (LO4) Examine the following book-value balance sheet for University Products, Inc Assets Cash and short-term securities Liabilities and Net Worth Bonds. Coupon : 8%, paid annually (maturity : 10 years, current yield to maturity-996) $1 $10 3 Preferred stock (par value $20 per share) 7 Common stock Accounts receivable Inventories Plant and equipment Total 10 10 $32 21 Retained earnings $32 Total The preferred stock currently sells for $15 per share and the common stock for $20 per share. There are one million common shares outstanding Preferred Stock Common Stock Total Dollars 9.36 million 1.50 million 20.00 million 30 86 million Percent 30 33% 4 86% 64 81% 100 00% If the preferred stock pays a dividend of $2 per share, the beta of the common stock is 1.5, the market risk premium is 7%, the risk-free rate is 4%, and the firm's tax rate is 40%, what is University's weighted. average cost of capital? (Round your answer to 2 decimal places.) WACC