Y Company (Y) is considering a new project that involves the production of additional product for which cash out flows and inflows have already estimated.Y has 14 million shares of common stock outstanding, 900,000 shares of 9 percent preferred stock outstanding and 210,000 ten percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $34 per share and has a beta of 2.028125, the preferred stock currently sells for $80 per share, and the bonds have 17 years to maturity and sell for 91 percent of par. The return on market portfolio is 12.5 percent, T-bonds (risk free assets) are yielding 4.5 percent, and Y's tax rate is 32 percent. What WACC should Y apply to this new project's cash flows if the project has the same risk as Y 's typical project?