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 11% interest on the bank debt and 9% interest on the secured debt. Wishing Well has 10 million shares of stock outstanding, trading at $89 per share. The expected return on Wishing Wells common stock is 22%.

Cash and marketable securities	$	170		Bank loan	$	310
Accounts receivable		330		Accounts payable		180
Inventory		50
				Current liabilities	$	490
Current assets	$	550
Real estate		2,600		Long-term debt		2,400
Other assets		140		Equity		400
Total	$	3,290		Total	$	3,290

Calculate Wishing Wells WACC. Assume that the book and market values of Wishing Wells debt are the same. The marginal tax rate is 35%. (Do not round intermediate calculations. Round your answer to 1 decimal place.)

Weighted-average cost of capital

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