You observe the following information on Nick’s Tire Company…

You observe the following information on Nick’s Tire Company: tax rate is 25%, Nicks’ 10 year maturity, $1,000 par value, 5% coupon (semi-annual pay) bonds currently trade in the market for $1,050, and Nick’s stock beta is 1.25.  Further, the risk free rate is 4% and the MRP (market risk premium is 5%).  Calculate Nick’s WACC if the target D/E ratio of the firm is 50% debt and 50% equity.  Answer as a whole percent to two decimals; for example 8.78% for your answer.