ABC Inc. has a the capital structure shown below. Liabilities $112 million Stockholders' Equity $97 million ABC Inc. will raise additional capital for new projects this year, in the amount of $44 million. The firm believes, however, that a capital structure with 57.5% of debt is ideal and will seek to implement that change when they raise capital. Currently, the firm has a beta of 0.7 . The risk-free rate is at 2.8%, and the market risk premium is currently 7%. The company will issue bonds with a par value of $1,000. The bonds will sold with coupon payments of $40, each paid on a semi-annual basis. They will be sold at par and have a maturity of 15 years. ABC Inc. expects to pay 4% on their state taxes, and 23% on their federal taxes. What should the firm estimate as its new weighted average cost of capital