1. Xanda Construction is considering increasing production of its XYZ widget at its South Carolina assembly plant. You have been provided the following pieces of information about Xanda.

1. Its stock price is $30. They just paid a dividend of $1.60. The stocks beta is 1.3. The risk-free rate is 4% and the market return is estimated to be 12%. The dividend will grow at a constant rate of g where g > 0.
2. Its bonds sell for $905. They pay semi-annually; have 10 years to maturity, a coupon rate of 6% and par value of $1,000.
3. The company’s marginal tax rate is 40%.
4. Its target capital structure of the project is 65% equity and 35% debt

      Based on this information, Xanda's WACC is ______%.