Star Financial, Inc. has a debt-to-equity ratio of 0.6. The firms market value of equity is $20 million and the firms annual interest expense from its most recent income statement is $800,000. The firm has 1 million shares of equity outstanding. The firm recently paid an annual dividend of $2 per share and you expect dividends to grow at 2% per year. The firms tax rate is 40%.

Estimate the firms WACC.