Wally’s plans to finance the project with 25% debt, 15% preferred stock, 35% retained earnings, and 25% newly issued equity.  The company’s cost of debt for six years is 3%, while the cost of preferred stock is estimated to be 8%.  The company’s cost of equity (retained earnings) is estimated to be 12%.  Flotation costs for any new equity issued would be 10%.  Calculate the WACC for the project. Round the percentage to two decimal places.