The Timo Inc. is unlevered and is valued at $640,000. Timo Inc. is currently deciding whether including debt in its capital structure would increase its value. The current cost of equity is 12%. Under consideration is issuing $300,000 in new debt with an 8% interest rate. Timo Inc. would repurchase $300,000 of stock with the proceeds of the debt issue. There are currently 32,000 shares outstanding, and the effective marginal tax bracket is zero. What will Timo's new WACC be?