A firm has to re-evaluate its weighted average cost of capital following a significant issue of debt. The firm now has financed 40% of its assets using debt and 60% using equity. Calculate the firms weighted average cost of capital where the firm's borrowing rate on debt is 8.6%, it faces a 35% tax rate, and the common stockholders require a 19.5% rate of return.
The firms weighted average cost of capital is?