The required return on Stymax's common stock is 8%. The market return is 7%, the T-bill is returning 2%, the companys Beta is 1.2 and its marginal tax rate is 25%. Stymax is currently financed with 60% Equity and 40% Debt. Use the Hamada equation to find the companys required return if management changes its financing to 40% equity and 60% debt.