Tech, Inc., has r_E of 12%, an r_D of 6%, at a debt-equity ratio of 0.50. Cali Tech plans to raise enough preferred stock to retire half of their outstanding common stock, which currently has a market value of $7 million. If the preferred stock has an expected rate of return of 10%, what is the new WACC? (Assume a 35% marginal corporate tax rate and that r_D remains at 6%.)