The table below shows a book balance sheet for the Wishing Well Motel chain. The company's long-term debt is secured by its real estate assets, but it also uses short-term bank loans as a permanent source of financing. It pays 11% interest on the bank debt and 9% interest on the secured debt. Wishing Well has 10 million shares of stock outstanding, trading at $80 per share. The expected return on Wishing Well's common stock is 19%. (Table figures in $ millions.) Cash and marketable securities $ 80 Bank loan $ 250 Accounts receivable 150 Accounts payable 120 Inventory 50 Current liabilities $ 370 Current assets $ 280 Real estate 1,700 Long-term debt 1,550 Other assets 140 Equity 200 Total $ 2,120 Total $ 2,120 Calculate Wishing Well's WACC. Assume that the book and market values of Wishing Well's debt are the same. The marginal tax rate is 21%. (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) Prev Question 2 of 4 Total 2 of 4 Visit question mapNext McGraw Hill