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Ursula Corporation uses no preferred stock. Their capital structure uses 78% debt (hint: the rest is equity). Their marginal tax rate is 31.87%. Their

 

Ursula Corporation uses no preferred stock. Their capital structure uses 78% debt (hint: the rest is equity). Their marginal tax rate is 31.87%. Their before-tax cost of debt is 5.06%. Ursula Corporation's stock has a beta of 0.66. The current risk-free rate is 0.25%, and the overall market is expected to return 8.01% over the long-run. What is Ursula Corporation's weighted average cost of capital (WACC)? Please enter without using the "%", but with two decimal places (in other words if you calculate 9.87%, then just enter 9.87).

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