4. Here is a simplified book balance sheet for Andy Company at the end of 2018 (dollars in millions): Current assets $1,418 Current Liabilities $752 plant, and 1,240 Long-term Debt 257 Net property, equipment Other assets 482 Deferred Taxes 199 Other Liabilities 111 Shareholders' Equity 1,821 Total 3,140 Total 3,140 Other information: There are 184.8 million shares outstanding with a per share price of $28.50 at end of year. The company has a beta of 1.14. Historical average risk premium is 8.4% per year and the risk- free rate is 9.25%. Newly issued Andy's long-term debt carries interest of 9.8%. The company's marginal tax rate is 34%. a. Calculate Andy's WACC. Use the CAPM and the data above. Make additional assumptions and approximations as necessary. (hint: only use Long-term debt" as debt) b. What would Andy's WACC be if it moved to and maintained a debt to market value ratio of 25%? Assume the only taxes are corporate taxes