Tim works for WatermanCorp, a manufacturer of high-pressure industrial water pumps. He reports directly to the CFO and she has asked him to calculate WatermanCorp's WACC. He has gathered the following information about WatermanCorp: its market capitalization (its market value of equity) is $140 million, its beta is 1.4, the total book value of its debt is $50 million, it has $20 million cash, and its cost of debt (using the quoted yields on WatermanCorp'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 5%, and the marginal corporate tax rate is 35%. Calculate WatermanCorp's WACC. When is it appropriate to use this WACC to evaluate a new project? Calculate WatermanCorp's WACC Round to two decimal places.)