Wyatt Fracking AB is a publicly traded company that is considering a restructuring plan. The company currently has 200 million shares trading at SEK 13/share and total debt outstanding of SEK 600 million. The firm currently has a (levered) beta of 2.16, the risk free rate is 1.9%, the market risk premium is 6% and the marginal tax rate is 40%.

The firm is planningto double its SEK debtand use the proceeds from the new debt to pay dividends & buy back stock. If it's bond rating will drop to BBB with a default spread of 2.5% over the risk free rate.

estimate the cost of capital after the recapitalization?

NOTICE. Report your answer in a percentage form and round it up to a fourth decimal. Don't write '%' sign in the field. WRITE 9.9751 if your answer is 9,9751%.