Problem 13-2 WACC (LO1)

Here is some information about Stokenchurch Inc.:

Beta of common stock = 1.5

Treasury bill rate = 4%

Market risk premium = 7.8%

Yield to maturity on long-term debt = 7%

Book value of equity = $470 million

Market value of equity = $940 million

Long-term debt outstanding = $940 million

Corporate tax rate = 21%

What is the companys WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)