Skimpole Sewing (SS) is a haberdashery manufacturer. At the end of the current year, analysts expect EBIT to be $3M and the same earnings are expected annually in perpetuity. Skimpole has long term debt of $5.5M and the (pre-tax) cost of debt is 4%. The unlevered cost of equity is 8% and the value of Skimpole's equity is $22.4M. The corporate tax rate is 30%. What is the company's WACC? Express your answer in percentage form rounded to one decimal