Use the following information: - Debt: $71,000,000 book value outstanding. The debt is trading at 93% of book value. The yield to maturity is 7%. - Equity: 2,100,000 shares selling at $38 per share. Assume the expected rate of return on Federated's stock is 16%. - 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 16.00% ( D/V= 0.1600 ). The pre-tax cost of debt has dropped to 6.6%. 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