The following data refers to Company Z:

- Beta = 1.7

- Required return on debt (yield to maturity on a long term bond) = 3.1%

- Tax rate = 21%

- 30-year government bond = 2.3%

- Market risk premium can be assumed to be 5%

Current Capitalization (Millions of USD)
Currency	Million USD
Shares Price	$ 10.7
Shares Outstanding	58.2
Market Capitalization	622.7
- Cash & Short Term Investments	10.2
+ Total Debt	422.0
+ Pref. Equity	-
+ Total Minority Interest	-
=Total Enterprise Value (TEV)	1,034.5
Book Value of Common Equity	237.0
+ Pref. Equity	-
+ Total Minority Interest	-
+ Total Debt	422.0
Total book capital	659.0

Estimate the cost of capital (WACC) for Company Z.
WACC =