Cost of Capital: Blues, INC is an MNC located in the united states. Blues would like to estimate its cost of capital (WACC). On average, bonds issued...

Cost of Capital: Blues, INC is an MNC located in the united states. Blues would like to estimate its cost of capital (WACC). On average, bonds issued by Blues yield 9%. Currently, Treasury security rates are 3%. Furthermore, Blues' stock has beta of 1.5, and the return on the Wilshire 5000 stock index is expected to be 10%. Blues' target capital structures 30% debt and 70% equity. If Blues is in the 35% tax bracket, what is the cost of capital?