Problem $4$

A university wants to calculate its weighted average cost of capital $($WACC$).$ It plans to withdraw

$$68$ million from savings, which had been earning $6\mathrm{.}3\%$ interest. It is paying $4\mathrm{.}5\%$ annual interest on

$$79$ million in bonds $($through annual payments$).$ It also plans to fund its efforts using $$94$ million in

general funds from taxpayers, and believes that the implicit interest rate applicable to these funds is

$13\%.$ What is the university's weighted average cost of capital? Round your answer to one decimal

place $($x$.$x$\%).$