Smarts Inc is expected to pay a $4 dividend at year end (D1=$4), the dividend is expected to grow at a constant rate of .05% a year and the common stock currently sells for $30 a share. The after-tax cost of debt is 7.5% and the tax rate is 40%. The target capital structure consists of 45% debt and 55% common equity. What is the companies WACC without considering floatation cost (%)? Dont round intermediate calculations.