#1. The current risk-free rate is 5%, and the expected return on a firm's debt is 6%. The firm's cost of equity capital is 10% and the firm maintains a financial policy of constantly maintaining an equal amount of debt and equity in the capital structure. The corporate tax rate is 35%. (a) What is the firm's current WACC? (b) What is the unlevered cost of equity capital for this firm (i.e., what is rUor ro)