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22. Coco Inc.'s capital structure consists of 80% debt and 20% common equity, its beta is 1.2, before tax cost of debt is currently at

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22. Coco Inc.'s capital structure consists of 80% debt and 20% common equity, its beta is 1.2, before tax cost of debt is currently at 9%, and its tax rate is 35%. However, the CFO thinks the company has too much debt, and she is considering moving to a capital structure with 10% debt and 90% equity with before tax cost of debt 2%. The risk-free rate is 4% and the market total return is 11%. By how much would the WACC change due to this shift in Coco's capital structure? (3 points)

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