Problem 19-7 WACC

The simplified balance sheet for the Dutch manufacturer Rensselaer Felt (figures in thousands) is as follows:

Cash and marketable securities 2,700 Short-term debt 76,800

Accounts receivable 121,200 Accounts payable 63,200

Inventory 126,200 Current liabilities 140,000

Current assets 250,100

Property, plant, and equipment 213,200 Long-term debt 209,800

Deferred taxes 46,200

Other assets 87,800 Shareholders' equity 247,500

Total 597,300 Total 597,300

The debt has just been refinanced at an interest rate of 6.50% (short term) and 8.50% (long term). The expected rate of return on the company's shares is 15.50%. There are 7.58 million shares outstanding, and the shares are trading at 44. The tax rate is 25%.

Calculate this company's weighed-average cost of capital. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)