You are a consultant to Pillbriar Company. Pillbriars targetcapital structure is 36% debt 14% preferred and 50% commonequity. The interest rate on new debt is 7.8% the yield on thepreferred is 7.00% the cost of retained earnings is 11.75% andthe tax rate is 38%. The firm will not be issuing any new stock.What is Pillbriars WACC?