Suppose an industry beta is measured to be 1.50 and the average leverage ratio in the industry is 0.20. KCB, Inc., an industry leader, has a leverage ratio of 0.40. Assume that the firm’s debt beta is zero which is the norm in the industry; and the appropriate tax rate is 30%. The risk-free rate and market risk premium estimates are 4.50% and 7.0%, respectively. Estimate the KCB’s WACC.