The total market value of Okefenokee Real Estate Companys equity is $6 million, and the total value of its debt is $4 million. The treasurer estimates that the beta of the stock currently is 1.2 and that the expected risk premium on the market is 10%. The Treasury bill rate is 4%, and investors believe that Okefenokee's debt is essentially free of default risk.

Inputs:

Market value of equity	$6 million
Market value of debt	$4 million
Beta	1.20
Market risk premium	10%
T-Bill rate	4%
b. Tax rate	40%
d. New beta	1.40

a) Estimate the WACC assuming a tax rate of 40%.

(I know the answer is 10.56%, but I just need to figure out how to get that so show work please!)