return on the market portfolio is $8\mathrm{.}50\%.$ 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 $0\mathrm{.}70,$ what is Thunderhorse's weighted average cost of capital?

a$.$ If Thunderhorse's beta is estimated at $0\mathrm{.}70,$ what is Thunderhorse's weighted average cost of capital?

$\%($Round to two decimal places.$)$