Assume that you are on the financial staff of Bagio Company, and you have collected the following data: The yield on the company’s outstanding bonds is 7.75%, its tax rate is 40%, the next expected dividend is $0.65 a share, the dividend is expected to grow at a constant rate of 6.00% a year, the price of the stock is $19.00 per share, the flotation cost for selling new shares is F = 10%, and the target capital structure is 55% debt and 45% common equity. What is the firm's WACC, assuming it must issue new stock to finance its capital budget?