Red Dirt Industries has a capital structure made up of 25 percent debt and 75 percent common equity. Red Dirts bonds have a $1,000 par value, a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sell for $1,025. Red Dirts beta is 2.2, the risk-free rate is 3 percent, and the market risk premium is 6 percent. Red Dirt just paid a dividend of $2.00. The firms stock price is $18.00. The firm's marginal tax rate is 40 percent. Calculate Red Dirts weighted average cost of capital (WACC).