The director of capital budgeting for XYZ, Inc. manufacturers of playground equipment, is considering a plan to expand production facilities in order to meet an increase in demand. He estimates that this expansion will produce a rate of return of 23%. The firm’s target capital structure calls for a debt ratio of 18%. See-Saw currently has a bond issue outstanding which will mature in 7 years and has a 3% annual coupon rate. The bonds are currently selling for $832.53. The firm has maintained a constant growth rate of 6%. See-Saw’s most recent dividend is $1.59 and its current stock price is $27.00. Its tax rate is 40%. What is the firm's Weighted Average Cost of Capital (WACC)? (Assume that there is no preferred stock outstanding.)