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Suppose that JB Cos. has a capital structure of 7 8 percent equity, 2 2 percent debt, and that its before - tax cost of

Suppose that JB Cos. has a capital structure of 78 percent equity, 22 percent debt, and that its before-tax cost of debt is 10 percent while its cost of equity is 14 percent. Assume the appropriate weighted-average tax rate is 21 percent and JB estimates that they can make full use of the interest tax shield.
What will be JBs WACC? (Round your answer to 2 decimal places.)

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