An analyst gathers the following information about a company's capital structure, cost of capital and marginal tax rate:

Item	Value
Market value of debt	$1,000 million
Market value of equity	$500 million
Book value of debt	$900 million
Book value of equity	$300 million
Pre-tax cost of debt	4%
Cost of equity	6%
Marginal tax rate	30%

If interest is fully tax deductible, the WACC is closest to: