Smarty Inc. is expected to pay a $2 dividend at year end (D2 - $2), the dividend is expected to grow at a constant rate of 0.05% a year, and the common stock currently sells for $35 a share. The after-tax cost of debt is 7.50%, and the tax rate is 40%. The target capital structure consists of 45% debt and 55% common equity. What is the company's WACC without considering floatation cost (%)? Do not round your intermediate calculations. If your answer is 12.34%, just enter "12.34