Problem 19-4 WACC Use the following information: Debt: $83,000,000 book value outstanding. The debt is trading at 87% of book value. The yield to maturity is 8%. Equity: 3,300,000 shares selling at $50 per share. Assume the expected rate of return on Federated's stock is 17%. Taxes: Federated's marginal tax rate is To - 0.21. Suppose Federated Junkyards decides to move to a more conservative debt policy. A year later, its debt ratio is down to 13.00% (DV= 0.1300). The interest rate has dropped to 76%. The company's business risk, opportunity cost of capital, and tax rate have not changed. Use the three-step procedure to calculate Federated's WACC under these new assumptions. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Weighted-average cost of capital