13. As Twitter's new CEO, Elon Musk is considering whether he can reduce the compiwn's weighted average cost of capital (WACC) by using a greater proportion of debt. The compmy currently has a market value of debt of $50 million and a market value of equity of $50 million, but he is considering issuing $25 million in additional debt to repurchase equity. Assuming no taxes, a 10% cost of debt, and a cost of equity of 20% before the firm's restructuring, the firm's original debt-to-equity ratio before the restructuring is implying that the firm's weighted average cost of capital is before the restructuring. After the restructuring, the company's new debt-to-equity ratio will be its new cost of equity capital will be , and its new WACC will be In the case with no taxes or bankruptcy costs, capital structure is to a firm's WACC. (a) 1;15%;3;30%;15%; irrelevant (b) 1;20%;3;30%;15%; relevant (c) 1;15%;2;25%;15%; irrelevant (d) 3;15%;1;20%;15%; irrelevant