Use the following information: . . Debt: $67,000,000 book value outstanding. The debt is trading at 88% of book value. The yield to maturity is 8%. Equity: 1,700,000 shares selling at $34 per share. Assume the expected rate of return on Federated's stock is 17%. Taxes: Federated's marginal tax rate is Tc 0.21. Suppose Federated Junkyards decides to move to a more conservative debt policy. A year later, its debt ratio is down to 17.00% (DNV= 0.1700). The interest rate has dropped to 7.6%. The company's business risk, opportunity cost of capital, and tax rate have not changed. Use the three-step procedure to calculate Federated's WACC under these new assumptions. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) X Answer is complete but not entirely correct. Weighted average cost of capital 5.85 X %