You have been asked to analyze the capital structure of DASA, an environmental waste disposal firm, and make recommendations on a future course of action. DASA has 40 million shares outstanding, selling at $20 per share, and a debt/equity ratio (in market value terms) of 0.25. The beta of the stock is 1.15, and the firm currently has an AA rating, with a corresponding market interest rate of 10%. The firm's income statement is as follows: EBIT ................ $150 million Interest expenses .......... $20 million Taxable income ........... $130 million Taxes ................ $52 million Net income ............ $78 million The current riskfree rate is 8%. a. What is the firm's current WACC?