3. Your company has the debt-to-equity breakdown below. The after-tax cost of the debt is 4% and the cost of the equity is 10%. Cost of Capital Proportion of Total Assets Equity 10% 30% Debt 4% 70% a. What is your company's Weighted Average Cost of Capital (WACC)? b. Your company's Employee Relations Division has $1,500,000 in total assets, which is the total capital employed by this division. The Earnings Before Interest and Tax (EBIT) of the Employee Relations Division is $170,000, and the tax rate is 20%. What is the Economic Value Added (EVA) for the Employee Relations Division? Is the Employee Relations Division adding to the economic value of this company? e