Tropical Tours is considering an expansion of its operations, which will require the company to issue new debt and equity. Tropical’s investment banker provided the following information about the cost of issuing new debt:

If Tropical’s capital structure consists of 60 percent debt, what WACC break points are associated with issuing new debt?

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Amount of Debt Issued $1-$450,000 450,001 - 750,000 Over 750,000 Yield to Maturity, ra 4.5% 5.8 6.5