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8. Blue Thumbs stock has a beta of 1.2. The current t-bill yield (risk-free rate,Rf) is 5.5% and the expected return on the market portfolio

8. Blue Thumbs stock has a beta of 1.2. The current t-bill yield (risk-free rate,Rf) is 5.5% and the expected return on the market portfolio (Rm) is 11.5%. The yield to maturity of Blue Thumbs bonds is currently 9.7%. If Blue Thumb is in the 30% tax bracket, what is the companys WACC?

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