Sapienza Berlusconi Truck Manufacturing Corporation (SBTMC) has 14 million shares of common stock outstanding, 900,000 shares of 9 percent preferred stock outstanding and 210,000 ten percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $34 per share and has a beta of 1.15, the preferred stock currently sells for $80 per share, and the bonds have 17 years to maturity and sell for 91 percent of their par value. The market risk premium is 11.5 percent, risk-free securities are yielding 7.5 percent, and SBTMC's tax rate is 32 percent. What WACC should SBTMC apply to a new project's cash flows if the project has the same risk as SBTMC 's typical project?Please show your work step by step and explain your approach.