Use the following information: Debt: $68,000,000 book value outstanding. The debt is trading at 89% of book value. The yield to maturity is 11%. Equity: 1, 800,000 shares selling at $35 per share. Assume the expected rate of return on Federated's stock is 20%. Taxes: Federated's marginal tax rate is T_c = .34. Suppose Federated Junkyards decides to move to a more conservative debt policy. A year later its debt ratio is down to 16.75% (D/V = .1675). The interest rate has dropped to 10.6% 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. Weighted average cost of capital