Consider an all equity firm with an equity of 0.7. The risk-free rate is 3 per cent and the market risk premium is 6 per cent. The company is considering a recapitalization to a debt-to-value ratio of 0.25; at this ratio, the before-tax cost of debt will be 5 per cent. For a tax rate of 35 per cent, what is the WACC at this new level of leverage?