(Weighted average cost of capital) In the spring of last year Tempe Steel learned that the firm would need to re-evaluate the company's weighted average cost of capital following a significant issue of debt. The firm now has financed 42% of its assets using debt and 58% using equity. Calculate the firm's weighted average cost of capital where the firm's borrowing rate on debt is 7.8%, it faces a 35% tax rate, and the common stockholders require a 20.3% rate of return.

Tempe Steel's WACC is ___% (round to three decimal places)