The Board of Directors of the company WILD has asked the financial planning team to calculate the companys weighted average cost of capital. The information they have is as follows: the companys debt-equity ratio has remained at 0.7 and it is planned to remain constant at that level for the following years; the cost of its debt is 8.5% nominal annual capitalized semi-annually; the industry average leveraged beta is 1.25; the market value of debt of the industry is $1,300 million and the market value of equity of the industry is $2,750 million; the corporate tax rate is 30%; the risk-free rate is 6% effective annual; and, the average return of the Price and Quotation Index (stock index) is 10% per year.

Calculate WILDs effective annual weighted average cost of capital.