Mondo Cult is considering acquiring pulpless.com. Pulpless is currently financed with 0.39% debt at an interest rate of 0.13%. If the acquisition takes place the debt level will continue at the 0.39% target level and the interest rate will remain the same. Pulpless's pre-merger beta is 1.8, and its tax rate is 0.37%. The risk-free rate is 0.04% and the market risk premium is 0.03%. What unleveraged discount rate will be used to value pulpless.com

This is the formula (wd}*{rd}+(1-{wd})*({rf}+{Rm}*{b})

I know the answer is .11 but not sure how to get to it.