We are on January 1, 2015. Highland Beverages is a manufacturer of bottled soft drinks based in Wimberley, Texas. Highland's management is looking to calculate its current weighted average cost of capital (WACC). Below is its December 31, 2014 balance sheet. Liabilities Assets Cash Marketable Securities Accounts Receivable Inventory Total Current Assets $25,000,000 $15,000,000 $20,000,000 $15,000,000 Accounts Payable (A/P) $3,000,000Accruals $50,000,000 Notes Payable (N/P) $75,000,000 $143,000,000Total Current Liabilities $60,000,000 $77,000,000 Long-Term Debt* $100,000,000 Net Fixed Assets Common Equity: Paid-in Capital* Retained Earnings $35,000,000 $25,000,000 $220,000,000 Total Liabilities & Common Equity $220,000,000 Total Assets *Long-Term Debt: Long-term debt consists of a bond issue made on 1/1/2010, where the company issued 100,000 bonds with a 20-year maturity, a coupon rate of 8% paid semi-annually, and a par value of $1,000, These bonds currently trade at a price of $1,150. **Paid-In Capital: Highland Beverages went public in 2005 and issued 1,000,000 shares at $35 each. The shares currently trade at $54. Currently, the yield in US treasury bonds is 3.5%, and the required rate of return on a well-diversified stock portfolio is 9%. Highland's beta is estimated to be 1.15, and its marginal tax rate is 40% What is Highland Beverages' WACC