The Gallagher Co. has a target capital structure of 65% debt and the remainder common equity. Gallaghers cost of debt is 8.5%, its tax rate is 35%, its most recent dividend was $2.00 and that dividend has been growing at 3.5% annually and is expected to continue that growth. The current price of Gallagher stock is $52.50 per share. Flotation costs on new equity are 8.5% and Gallagher has retained earnings of $3.5 million. What is the WACC if Gallagher's total capital expenditure is expected to be $8.5 million?

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