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return on the market portfolio is 8 . 5 0 % . The company's effective tax rate is 3 9 % . Its optimal capital

return on the market portfolio is 8.50%. The company's effective tax rate is 39%. Its optimal capital structure is 75% debt and 25% equity.
a. If Thunderhorse's beta is estimated at 0.70, what is Thunderhorse's weighted average cost of capital?
a. If Thunderhorse's beta is estimated at 0.70, what is Thunderhorse's weighted average cost of capital?
%(Round to two decimal places.)
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