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Hoosier, Inc. currently has no debt. Its beta is 1.20, the risk free rate is 3%, the market risk premium is 6%. Its tax rate

Hoosier, Inc. currently has no debt. Its beta is 1.20, the risk free rate is 3%, the market risk premium is 6%. Its tax rate is 20%. If Hoosier were to recapitalize to 40% debt, it would issue debt at a rate is 8% and use the proceeds to repurchase stock. Find Hoosier's WACC if it recapitalizes.

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