= = As part of your firm's plan to expand production capacity by 25%, you must estimate the firm's WACC. Your firm has a target leverage ratio of D/(D+E) = 30% (with D = net debt and E = market capitalization) for which its cost of debt is 3.6%. Using data from the last two years' stock returns, your assistant has estimated that the firm's equity beta is 1.3. The firm's tax rate is 40%. Assuming a risk-free rate of 3% and a market-risk premium of 6%, what is the firm's WACC? 8.2% 7.6% 9.3% 8.7%