11.Calculating WACC. Magnetic Island Tours Ltd has no debt but can borrow at 6.4%. The firms WACC is currently 10.9%, and there is no corporate tax. a. What is Magnetic Islands cost of equity? b. If the firm converts to 30% debt, what will its cost of equity be? c. If the firm converts to 60% debt, what will its cost of equity be? d. What is Magnetic Islands WACC in part b? In part c? LO 13.1, 13.2