1. Assume you are on the financial staff of BL Companies. and you have collected the following data: (1) The yield on the company’s outstanding bonds is 5.0%, and its tax rate is 40%. (2) The expected year-end dividend is $1.80, the dividend is expected to grow at a constant rate of 5% a year, the price of BL stock is $22.00 per share, and the flotation cost for selling new shares is 10%. (3) The target capital structure is 60% debt and 40% equity. What is BL Companies WACC assuming it has to issue new shares to finance its capital budget?