Problem 19-6 WACC The table below shows a book balance sheet for the Wishing Well Motel chain. The company's long-term debt is secured by its real estate assets, but it also uses short-term bank loans as a permanent source of financing. It pays 12% Interest on the bank debt and 8% Interest on the secured debt. Wishing Well has 10 million shares of stock outstanding, trading at $87 per share. The expected return on Wishing Well's common stock is 21%. (Table figures in $ millions.) $ $ Bank loan Accounts payable Current liabilities 320 140 468 $ Cash and marketable securities Accounts receivable Inventory Current assets Real estate Other assets Total 150 220 50 42e 2,050 13e $ Long-term debt Equity Total 1,640 500 $ 2,600 $ 2,600 Calculate Wishing Well's WACC. Assume that the book and market values of Wishing Well's debt are the same. The marginal tax rate is 21%. (Do not round Intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) Weighted-average cost of capital 96