Use the following information: - Debt: $69,000,000 book value outstanding. The debt is trading at 95% of book value. The yield to maturity is 10%. - Equity: 1,900,000 shares selling at $36 per share. Assume the expected rate of return on Federated's stock is 19%. - 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 16.50% ( D/V= 0.1650 ). The pre-tax cost of debt has dropped to 9.6%. 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. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places