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The table below shows a book balance sheet for the Wishing Well Motel chain. The companys long-term debt is secured by its real estate assets,

The table below shows a book balance sheet for the Wishing Well Motel chain. The companys 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 10% interest on the bank debt and 8% interest on the secured debt. Wishing Well has 10 million shares of stock outstanding, trading at $88 per share. The expected return on Wishing Wells common stock is 21%. (Table figures in $ millions.)

Cash and marketable securities $ 160 Bank loan $ 300
Accounts receivable 320 Accounts payable 180
Inventory 50 Current liabilities $ 480
Current assets $ 530
Real estate 2,550 Long-term debt 2,450
Other assets 150 Equity 300
Total $ 3,230 Total $ 3,230

Calculate Wishing Wells WACC. Assume that the book and market values of Wishing Wells 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.)

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