Tim works for HydroTech, a manufacturer of high-pressure industrial water pumps. He reports directly to the CFO, and she has asked him to calculate HydroTech's WACC. He has gathered the following information about HydroTech: its market capitalization (its market value of equity) is $110 million, its beta is 1.2 , the total book value of its debt is $50 million, it has $30 million cash, and its cost of debt (using the quoted yields on HydroTech's outstanding bond issues) is 4%. In addition, the yield of the 10 -year government bond (the risk-free rate) is 2%, the market risk premium is 4%, and the marginal corporate tax rate is 35%. Calculate HydroTech's WACC. When is it appropriate to use this WACC to evaluate a new project? Calculate HydroTech's WACC. WACC=% (Round to two decimal places.)